Mitsubishi Corporation Unimetals, Mitsubishi Corporation’s metal trading subsidiary, reported primary aluminium price range at London Metal Exchange (LME) is forecasted at around US$ 2,000-2,800 per tonne in 2011. LME price is supposed to maintain steady tone with cash inflow from financial market.In 2010, LME primary aluminium price strongly surged due to excess liquidity and market expectation for aluminium demand growth in emerging countries, despite of global ingot oversupply. In 2011, global ingot supply and demand is gradually balanced. Under the situation, movement in financial market may affect LME price rather than supply and demand factors. U.S. government and Federal Reserve Board will purchase long-term government bonds at accumulative US$ 600 billion by April-June 2011. This quantitative easing policy, so-called QE2, may be followed by monetary supply increase of US$ 1 trillion or more into financial market. This cash is expected to flow into commodity market. LME primary aluminium price would be pushed up by the cash inflow, not by supply and demand factors.
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