INTL AL CONF: Disconnected LME aluminium price despite ‘perfect cocktail’ for rally

The disparity between aluminium prices on the London Metal Exchange and the bullish factors in the physical market was a key talking point at Metal Bulletin’s 33rd Aluminium Conference in Berlin last week.

Market participants noted that the exchange prices had the “perfect cocktail” to rally in recent months and the lack of reaction shows they have become too macro driven.
“The LME didn’t react and that is the key problem. There was a totally disconnect and it is on a different wave length,” one trader said.
“What more does it [the price] want? Every factor for the outright price to be extremely bullish was in the market, it was a perfect cocktail,” he added.
The LME price has hovered between $2,000 and $2,100 per tonne all year despite extremely high raw material costs, uncertainty in the market about US sanctions in Rusal, and decade-low stocks.

Uncertainty surrounding US sanctions on Rusal which have...


Alice Mason

September 17, 2018

17:00 GMT