Downbeat US and Chinese economic data keeps LME prices below key resistance levels

 

LME 3M aluminum prices mainly hovered around $1,900 per mton during today’s session, closing marginally lower at $1,903 per mton. LME aluminum prices were hardly changed as: a) they continued to face technical resistance near the 100- day moving average threshold; b) Chinese industrial production growth rates weakened at the start of 2019 to a decade low of 5.5% y/y; c) uncertainty increased regarding a planned summit between Presidents Trump and Xi; and d) US new home sales fell more than expected in January. From a medium-term standpoint, we continue to believe that prices have not bottomed out yet.

 

More details in full report.

 

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