LME price up on journey toward $… per mton; European foundry demand hit by the semiconductor crisis

1. LME prices bounced back to a fresh three-year high as commodity complex continues to rally. Technically speaking, $… per mton is still a short-term possibility, although levels above $… per mton are seen as unsustainable.

2. The Shanghai Futures Exchange (SHFE) was closed today due to the International Workers’ holiday. Overnight and after-hours trading will resume on Thursday, May 6.

3. CHINA SCRAP ALERT. THE BOOM IS HERE: China is the world’s largest aluminum recycler, and…it’s just the beginning.

4. EUROPE PFA ALERT. NEGATIVE IMPACT IS HERE: Semiconductor crisis finally hits European PFA demand.

5. LME backwardation at the far end of the curve continues to intensify; Cash–3M backwardation remains steep.

More details in full report.