Aluminum Prices Decreased Due To Less Demand And European Import Tariff Plans
March 26, 2021
Aluminum price analysts recently predicted a decline in aluminum prices due to the increase in import tariffs in Europe. Not only that, but the lack of supply-demand has also caused the price of this multipurpose metal to weaken. As reported in Bloomberg on April 9, at the LME / London Stock Exchange, the price of aluminum with a 3-month contract was at the level of 1,871 US dollars per metric ton, which means one percent decreased from 1890 US dollars at the previous price. So practically within a week, the price of aluminum fell 1.47 percent. If the use of recycling now reduces demand. Even the automaker Jaguar uses a large amount of recycled aluminum, up to 75 percent. The factor that has decreased the price of article source is the lowering of aluminum stocks in China. In China, there are currently only 1,641 tons, especially in the Shanghai metal market, even though the need for aluminum is increasing but prices cannot also increase.
It can be noted that aluminum prices will be able to rise if China and the United States are successful in negotiating trade negotiations. They, China, and the US are indeed holding negotiations and are now almost reaching the final, so it is hoped that it will have a positive impact by increasing aluminum production activities in China in line with increasing global demand. The position of the metal price is technically the best because it can be recycled. It can be seen that it is below the MA (Moving Average) 50, MA 100, and MA 200. Meanwhile, with the RSI indicator neutral in the 14 areas, the stochastic is below 9.6 and MACD is below 12.26 and ADX is below the 14 areas. Weak prices for this multipurpose metal are due to 3 factors. The first is due to the imposition of an increase in import tariffs in Europe. The news of the increase will certainly reduce the flow of aluminum-based products to the United States which will lower prices.