Morning Bites (part 2)

🇨🇳China has cancelled the 13% tax rebates for aluminium and copper from 1 December, Bloomberg reports, citing China's authorities. After the announcement, LME Al prices jumped 7% on Friday (vs. Thursday) to USD 2,730/t. Meanwhile, LME Cu prices showed almost no reaction, as China is a net importer of the red metal

In our view, the policy change aims to keep more metal in China and would tighten the availability of Al in global markets, as China accounts for >40% of global aluminium exports

On our numbers, there is still much upside in Cu and Al: we see their fundamentally reasonable price for 2025 at USD ~12,000/t and USD ~3,000/t, respectively, given hefty grid investments in China, strong demand trends globally and the recently started monetary easing cycle in key economies (the US/EU and China)

#aluminium #copper 
https://metals-wire.com/news-reports