With the exchange market remaining very steady and LME markets on a bit of a downturn, it seems there is more downside pressure than upside in today’s market. The hope of a strong Asian return to the markets seems to have faded away on the back of a less than demanding manufacturing sector.
Locally the news of another big Australian manufacturer in Alcoa planning to close has brought the harsh reality of our manufacturing sector to the forefront of our minds. It seems quite surprising that a company synonymous with the Aluminium industry in Australia will soon cease to produce in this country.
**** DJ LME Metals Fall Across the Board — Market Talk ****
By Laura Clarke @ dowjones.com
Base metals on the London Metal Exchange slump in European trading hours. “Today’s weakness across the base metals seems to have put an end to the short-covering rally that has been unfolding for most of February,” notes Will Adams, head of research at FastMarkets. “Our view of the recent strength has been to run with it, but not to get comfortable with it as we expected it to lead to selling, which now seems to be emerging. As such, we would expect base metals prices to pull back further.”