Base Metals: Prices will need to push lower to force some supply out of the market – ANZ

Further weak economic data weighed on the base metals sector, economists at ANZ Bank inform.

Key quotes

“Copper fell more than 3%, while aluminium hit a four-year low on speculation that demand will continue to erode.” 

“US factory orders and employment tumbled the most in 11 years. This helped push the JP Morgan global PMI to its lowest level since 2009.” 

“With energy costs are lower, aluminium producers are managing to hold on for the moment. However, with demand so weak, prices will likely need to push even lower to force some supply out of the market.”