“I think the import window won’t close in the short term because the Covid-19 pandemic overseas has not yet reached a turning point. You can see that LME stocks are rising and macroeconomic data for ex-China regions is not good either. The US dollar also remains in high ground, which could continue to pressure LME prices,” Fastmarkets aluminum analyst Cao Yang said on Tuesday May 19.
“Although prices in China may come down again due to the increase of local production capacity, which will lead to a decline in the Shanghai-London ratio, it should not happen in the short term,” Cao added.
Economic activity across Europe and the United States has suffered amid the ongoing Covid-19 pandemic, demonstrated by weak macroeconomic indicators in both regions in recent months.
IHS Markit’s final manufacturing purchasing managers’ Index (PMI) for the eurozone sank to a record low of 33.4 in...