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...