LIVE FUTURES REPORT 08/08: LME aluminium price rockets 3.2% on Alcoa strike; nickel edges above $14,000/t

Aluminium prices on the London Metal Exchange soared by more than 3% at the close of trading on Wednesday August 8, buoyed by strike action at Alcoa’s Pinjarra alumina refinery, while tit-for-tat tariffs continue to limit confidence in commodity investment.

Industrial action at the Pinjarra refinery started after the Australian Workers’ Union (AWU) said it opposed Alcoa’s attempt to terminate its agreement.

Meanwhile, total on-warrant aluminium stocks on the LME are now at an 11-year low of 833,075 tonnes, further facilitating positive price action.

On the other hand, supply from China is healthy, according to Commerzbank Research.

“It is somewhat difficult to find a definitive reason behind the surge. Given that China is exporting evermore aluminium, and news of the Alcoa strike came out at the start of the [London] day, the global market is in no shortage of supply. It is therefore...

Published

Hassan Butt

August 08, 2018

17:55 GMT

London