LME aluminum ended lower as inventories rose sharply

Dec 14 - London Metal Exchange (LME) aluminium futures fell on Tuesday after a sharp rise in inventories at LME-registered warehouses, but losses were limited on strong demand and expectations of tight supply from key producer China and copper prices also fell as inventories continued to build.

LME aluminum ended lower as inventories rose sharply compared to the past several months. Maybe lots of companies would benefit from the lower copper and aluminum price, for example for the electric wire company or electrical wire suppliers, in the past months, lots of purchasers or buyers were afraid to order the copper wire or cable because of the highly copper or aluminum price, that caused many key electrical wire suppliers or manufacturer trapped into trouble, now the situation definitely will change a lot. 

 LME aluminium for three-month delivery fell 0.96 percent to $2,628.50 a tonne at 17:00 London time, reversing a rally that had pushed prices to $2,665.25, their highest since December 2.  

"Aluminum is down a lot compared to other base metals," said Dan Smith, managing director at Commodity Market Analytics.  Aluminium looks cheap given the health of global demand."  If the government prioritises growth over the environment, supply in China could increase, he said, but not by enough to significantly alleviate shortages.  Aluminium prices have fallen 18 per cent since hitting a 13-year high of $3,229 a tonne in October.  

LME aluminium inventories rose 67,750 tonnes to 977,400 tonnes as cancelled warehouse orders fell to 15 per cent of total inventories from 35 per cent at the end of November.  

Receding concerns over LME aluminium supply helped narrow the premium for spot aluminium over three-month delivery to $2.50 a tonne from Monday's close of $16.20.  LME copper for three-month delivery closed down 0.38% at $9,412 a tonne.  Lme-registered warehouse copper stocks increased for a fourth straight day, with total stocks rising to 87,375 tonnes from 74,225 tonnes on December 7.  Supply concerns have eased, with inventories on registered orders rising to 82,850 tonnes from nearly 15,000 tonnes in mid-October.  

Influence on Electric Wire Company 

There will be lots of electric wire companies accelerate to expand their production ability due to the recent aluminum and copper price decreasing. In particular for China electrical wire suppliers, this is a excellent chance to promote their product to more countries when the pandemic still is on influencing the global supply chain including the wire and cable supplying. 

On the other hand, for US, Mr.Biden pushed the $20 billions infrastructure building legislation successfully and there will be lots of copper wire or cable need, including the more and more popular thhn wire and cable, which will has a rapid rise on the manufacture and need.

JZD Wire&Cable is a professional electrical wire suppliers and manufacturer focus on thhn wire and export our thhn wire including cable thhn 8 awg and 10 awg to 10 countries and expected to fully expand to whole Latin American countries and our thhn wire obtained the UL certification and welcome to contact us for more information or consult for more detail.

Extension Information

Previous Post: What should we do if the flexible cable has lumps?

Next Post: How do find out where the wire and cable breakpoint is?