In this edition, Fastmarkets’ research team delivers key insights and forecasts into aluminium markets around the world.
Aluminium price down 2.3% week-on-week amid stock market sell-off
Global markets remain rattled by the spread of the novel coronavirus (2019-nCOV) across Europe and the United States. Panic-selling in major equity markets now paints a drastically different picture than that of early January when markets celebrated record highs following the signing of a trade deal between China and the US. Circuit breakers have been triggered three times in US stocks within a short timespan of two weeks; the S&P 500 has already dropped by 30% from only a month ago.
Governments across Europe carrying out lockdowns
While the virus originated in China, the country appears to be progressing steadily in its efforts to contain it; the draconian measures put in place have resulted in a slowing rate of infections across the country. But rates are accelerating in countries in the West, which are now scrambling to replicate the lessons learnt from China to halt their outbreaks.
Coronavirus weighing on China's building and construction sector
While the coronavirus outbreak in China has been largely brought under control, its impact on the Chinese economy should not be overlooked. According to the latest data from National Bureau of Statistics of China, the country's new housing starts plunged by 45% year on year in January-February due to construction workers being quarantined.
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