Goods. aluminum at its lowest level in a year

The price of aluminum fell on the London Metal Exchange (LME) this week, which led to excess production due to fears of an unfavorable recession in demand for industrial metals. «Surprisingly high US inflation rates, resulting in the strength of the US dollarThey weigh the prices of base metals, says Commerzbank analyst Daniel Brizman.

LME Index The LME Index, which includes the prices of aluminum, copper, lead, nickel, and zinc sold on the LME, fell 4238.3 points on Thursday, down more than 7% in a week. This is its lowest level since December. The aluminum market has completely overturned, according to Daniel Brizman. «Until recently, there was a shortage, but now the market seems to be sufficiently, if not heavily supplied.“On Thursday, the metal hit a one-year low of $ 2,487.00 per tonne, erasing the huge post-war gains in Ukraine that reached a record high of aluminum in March,” he said.

Between January and April, the World Bureau of Metals Statistics (WBMS) estimated that the global aluminum market had a surplus of 400,000 tons, while it had a large deficit for the whole of 2021, according to a report released on Wednesday. China significantly increased its exports with almost 677,000 tons of aluminum exported in May, according to data released earlier this month. «Record amount“According to Daniel Brizman, which is particularly explained by the resumption of the smelters, after the restrictions imposed during the Olympic Games at the beginning of the year, after the announcement of the Chinese government.”Increase investment in infrastructure to support the economy«. While China is a major consumer of industrial metals, it is also a major producer, currently accounting for about 58% of world production, according to the WBMS. Analysts also warn that China’s economic recovery is based on shaky foundations, when the country is the last major world economy to maintain a zero-sum Covid strategy based on targeted quarantine, targeted blocking or still mandatory PCR tests. LME traded for $ 2505.05 per tonne in three months at 15:45 GMT (17:45 Paris) on Friday, up from $ 2,680.00 at the close on Friday.

Gold is retreating

The price of gold fell during the week as the dollar strengthened, struggling to maintain its peak since early May, which was reached on Monday due to the Federation’s determination to raise interest rates. The price of the yellow metal rose last Friday, when inflation was at a record high in the United States, reaching $ 1878.41 per ounce on Monday, which is a record for a month. But inflation slashed dollar-denominated government bonds, two other safe havens that stole gold from the show. These assets are really benefiting from the prospect of a tougher Fed policy. The Monetary Institute responded to market expectations by raising its interest rates by 0.75 points on Thursday. «Fear of new US interest rate hikes severely limits the potential for gold growthExit analyst Han Tan warns.

However, some market players believe that the precious metal, which has risen slightly since the beginning of the year (+ 0.9%), may be of interest to investors. «The price of one ounce is stable, while (US stock market indices, editor’s note) S&P 500 և Nasdaq lose 22% և 31% respectively.“- Mirabaud analyst John Plassard emphasizes. An ounce of gold cost $ 1844.10, seven days before the end of trading against $ 1871.61.

Sugar is less profitable

Sugar prices were rising in London as farmers were tempted by other, more lucrative crops, but in New York they were falling, which slowed surplus production. London white sugar received better support, with India limiting white sugar exports to 10 million tonnes for the current marketing year, while “Brazil gathers its sugarcane crop, most of which processes ethanolsays Jack Squill, an analyst at Price Futures Group. Rising electricity costs ացումը Rising fertilizer prices also affect prices. At the same time, world production is threatened by the transition from sugar beet to grain-oil seeds, which have become more profitable after rising prices due to the war in Ukraine, according to Bloomberg.

However, Jack Squill notes that production from Brazil և India, which are the two largest producers of sugar in the world.should be in excess or at least in line with demand«. «Sugar supply and production are expected to increase after the recent shortage“, He continues. The price of 1 pound of raw sugar for delivery in New York next July was 18.78 cents, down from 19.07 cents seven days ago. A ton of white sugar for August delivery in London cost $ 561.40, compared to $ 564.30 at the close last Friday.