October 2018 | Base Metals
Aluminium: Alunorte spike flags disruption fears
The Alunorte situation in Brazil brought fresh volatility to aluminium prices last week, but we seemed to be back where we started now with the plant running at 50% capacity. Prices are also back to where they started before Hydro’s total shutdown announcement. However, there are still plenty of risks surrounding aluminium and alumina supply, and what we have learnt from the past week is how sensitive market sentiment and prices can be to fresh disruption news.
Aluminium was the top performer among base metals last week...
Rising US treasury 10-year bond yields to 3.2% sent major equity indices into manic selling mode last week, which in turn put a bearish spin at the base metal prices. But aluminium was resilient and come out as the complexs top performer due to the surprise move by Hydros Alunorte to shut down 100% of its operations prices went up as much as 4.2% last Wednesday followed by another 3.1% increase the next day. However, there was a correction on Friday amid market skepticism over the likely length of the refinery suspension. And the price correction...
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