Aluminum Recovers With More Than 13% Price Jump In A Week
MetalMiner | Apr 16, 2018 03:14AM ET
At the end of the week-before-last, aluminum prices seemed to struggle; some thought the metal might have shifted to bearish country.
However, after that LME aluminum prices jumped by more than 13% in a week.
LME aluminum prices retraced to August resistance levels ($1,972/mt), and then increased sharply again.
The fact that LME aluminum prices rebounded to the current level suggests a sign of price strength. Buying organizations had a chance to commit to some volume last month, to reduce price risks on their aluminum purchases.
In bullish rallies, staying on top of buying dips remains critical.
A Brief Look at Other Base Metals
This latest price rally has extended to other base metals. The two-month downtrend in copper prices reversed this month, as prices have increased. Copper prices again appear to have moved toward the $7,000/mt level.
Nickel prices also traded higher so far this month, reaching $13,810/mt. However, 2018 nickel prices did not fall as far as aluminum or copper did.
Both Zinc and lead prices show weaker trading volume. The price trend is more sideways and less volatile than the other base metals (copper, aluminum and nickel).
However, LME zinc prices have shown a strong long-term uptrend since the beginning of 2016.
What This Means for Industrial Buyers
The LME aluminum price retracement gave buying organizations a good opportunity to buy, as prices skyrocketed again.
by Irene Martinez Canorea
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