Global Aluminium trend is bearish. The current trend is down, despite the rise from yesterday. The idea of July that Al has no where to fall proved untenable and no strong reversal signals.
Following news of shrinking production capacity of Alcoa Inc. and the fact of export of Aluminium of China (toward deficit markets in Europe and the US), and this at very low prices (the exports from China by Al continue to be subsidized by the government) price adjusted, but the mood is to continue the downward trend . Aluminum output in China expanded 12 percent in the first nine months as the country’s economy grows at the weakest pace in a generation. Global oversupply deepens and can not be offset by the average annual demand growth of about 6.5%. Current price (Al): 1507,75; at 52W Range = 1445.00 / 2086.75 and weighted average annual decline of -27.89%.
Against this background, the short positions remain the most relevant.
G.Hristov / Head of Fundamental Analyzes
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