Spot aluminum prices on the European market traded slightly lower last week as worries over Brexit and its impact on future demand influenced buyers.
Wrote Donald Levit of Economic Calendar: “While there is not expected to be a huge shift in aluminum demand as the U.K. slowly decouples itself from the European Union, a general air of uncertainty is pressuring the sentiment around aluminum demand and prices are responding by dropping slightly.”
Want a short- and medium-term buying outlook for aluminum, copper, tin, lead, zinc, nickel and several forms of steel? Sign up for your free trial to our monthly buying outlook reports!
Levit added that Brexit is not expected to have a sudden impact on demand for aluminum but prices for the metal could fluctuate as the result of currency valuations. Forecasts currently call for a depreciation of the pound, but other factors stemming from Brexit — including slow economic growth and lagging U.K. vehicle sales — could team up to put further pressure on aluminum prices.
Meanwhile, in China…
MetalMiner reported that Chinese aluminum output has recovered, following a price rebound with a run up in Shanghai aluminum prices spurring an increase in Chinese aluminum production and exports in recent months.
We encourage North American manufacturers, especially those that source internationally, to keep a close eye on the Brexit fallout as it will sure to have a major impact on metal prices, including aluminum in the months to come.
You can find a more in-depth aluminum price forecast and outlook in our brand new Monthly Metal Buying Outlook report. Check it out to receive short- and long-term buying strategies with specific price thresholds.