Sentiment soured in the base metals sector as the turmoil in the crude oil markets led to a wave of selling across the sector, strategists at ANZ Bank inform.
Key quotes
“Worldwide aluminium production fell by 3.8% m/m in March to 176.7kt. However, reports of imminent production cuts in China have supported prices.”
“With prices sitting below USD1500/t, more than 50% of the industry in China would be uneconomic. This has seen inventories on the Shanghai Futures Exchange fall 10% to 485kt over the past month.”
“Iron ore prices held up relatively well, with futures on the Singapore Exchange holding above USD80/t. The market has been buffered from the worst of the coronavirus impacts by relatively robust demand from Chinese construction and real estate sectors.”
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