August 25, 2021 – Commodity prices continued to rise today. Nickel and aluminum futures have risen. US infrastructure package continues to take shape and is expected to be passed this year. Despite rising capacity utilization, U.S. steel prices to continue to rise. Shares in sectors such as construction materials and equipment, steel and plant engineering make significant gains.
US infrastructure package supports construction sector
The U.S. infrastructure package drawn up jointly by Republicans and Democrats still must clear several political hurdles. However, there is little doubt that the package, worth a good one trillion US dollars, will be passed in the year.
Low US Dollar Index is boosting commodity prices
The Speaker of the US House of Representatives Pelosi promised to pass the infrastructure bill before September 27. As a result, the US dollar index fell to a one-week low of 92.81, boosting commodity prices.
Construction materials and equipment, steel and plant engineering make significant gains
Shares in sectors such as construction materials and machinery, steel, and plant engineering, which are likely to benefit from public investment, have risen significantly since the beginning of the year and are now trading at high valuations above the five-year average.
Source: deutsche-bank.de
US steel mills increase capacity utilization, prices to rise further
The latest report from the American Iron and Steel Institute (AISI) on capacity utilization at US steel mills fits in with this. The US mills are currently running at 84.7% capacity utilization, an increase of 0.4% compared with the previous week. Although supply is therefore at a higher level than last week, but prices for steel and stainless steel are expected to continue to rise.
Facts, figures, data: Commodity prices continue to rise
Base Metals mostly positive
The other base metals, such as copper, zinc, lead or tin, were also mostly positive this morning.
Aluminum futures on the rise
Aluminum futures on the SHFE have risen again this morning and are currently up 0.96%. On the LME, aluminum is also continuing to move higher at about 0.75%.
Chinese aluminum spot market prices are also up by up to 1%.
Nickel back above $19,000 per tonne
Nickel futures on the LME are currently over 0.9% higher than Tuesday and stand at about $ 19,227 per ton. On the SHFE, nickel is picking up more significantly by more than 1.5% and currently stands at around $22,296 per ton. Nickel futures in India and Russia are following the trends on the SHFE and LME, rising by up to 1.0%.
SHFE Stainless Steel futures have followed the nickel trend and are up more than 1.3%.
Source: lme.com, shfe.com.cn
Read also:
- Stainless Espresso: Good economic data have a positive impact on the markets
- Stainless Espresso: Dollar, nickel and aluminum rise
- Stainless Espresso: How playing with fear affects commodity markets
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