Average LME aluminium price down by 2.5% week on week
Although LME aluminium began this week on the rebound, prices extended their recent downtrend further last week, approaching the $1,400-per-tonne level. The weekly average LME aluminium cash price was down 2.5% last week to $1,432.50 per tonne from previous week's $1,469.60 per tonne. With global confirmed coronavirus cases reaching 1.91 million and two thirds of the global economy still under lockdown, we believe aluminium prices should continue to remain pressured - at least in the current quarter.
China's trade data was better than expected
So far, there has been no sign of any significant decline in China's exports. According to the latest trade data, although the country's dollar-denominated exports and imports both fell from a year ago in March, they were better than the consensus forecasts. The country's exports fell 6.6% by year on year in March, compared with the 17.2% contraction in combined figures for January and February. Custom's data also showed China's imports only dropped by 0.9% year on year in March, compared with a 4% decline in January and February.
Aerospace industry hit hard by Covid-19 pandemic
We have covered extensively the impact of coronavirus outbreak on the automotive industry in recent reports. But the aerospace industry has also been hit hard by the Covid-19 pandemic, with companies in the sector forced to take drastic measures to cope with the new market situation.
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