Trade spats to curb industrial metals demand: BMO
BMO Capital Markets has lowered its demand estimates for next year on the anticipation that higher tariffs and multilateral trade friction could tamp down industrial output.
Business Line believes the band of resistance for aluminum, which closed at US$2,567.5 per tonne on the LME spot on Friday, is between $2,400 and $2,600:
As long as the metal hovers above 1,900, the uptrend stays in place. Strong close above 2,600 can lift the base metal higher to 2,800 and then to 3,150-3,200 range in the long-term. On the downside, tumble below 1,900 will drag LME Aluminum spot to 1,700, and then 1,500.
Business Line believes that the base metal should be supported in the long-term by the global recovery and revival in demand.
Michael Allan McCrae wrote this story. You can contact him at [email protected] or @michaelmccrae.
