- Write by:
-
Monday, December 11, 2023 - 22:13:49
-
113 Visit
-
Print
Mining News Pro - Aluminum prices touched their lowest in more than three months on Monday as speculative funds stepped up selling on expectations of rising inventories.
Weak data in top metals market China and a strong dollar weighed on the wider metals market.
Three-month aluminum on the London Metal Exchange (LME) fell 0.4% to $2,126.50 a metric ton in official open-outcry trading, its weakest since Aug. 21.
Aluminum, used in construction, transport and packaging, has slid 10% on the LME since touching a five-month peak in early October.
“Aluminum is still seeing this CTA sell program where the short is building to considerable levels,” said Alastair Munro, strategist at broker Marex.
Commodity Trade Advisor (CTA) investment funds are largely driven by computer programs.
There are also worries about excess supply showing up in LME warehouses next week ahead of the Third Wednesday expiry of the key three-month contract, Munro added.
“There has been much chatter about the possibility of stock inflows around the Third Wednesday prompt. It’s all rumour, but with premiums dropping it would make sense for there to be stock delivered,” he said.
Copper and most other base metals slipped after consumer prices in China fell at the fastest rate in three years last month while factory gate deflation deepened as weak domestic demand casts doubt over the economic recovery.
Also weighing on commodities was a stronger dollar ahead of US inflation data and central bank meetings this week, making commodities priced in the US currency more expensive to holders of other currencies.
“With so many key data release points this week, metals should continue to see sell-offs ahead of weak data prints,” one metals trader said.
LME copper shed 1.1% in official activity to $8,360 a ton, nickel lost 1.7% to $16,525, zinc eased by 0.5% to $2,387.50, tin was down 0.5% at $24,450 and lead was little changed at $2,025.
Short Link:
https://www.miningnews.ir/En/News/627747
A key measure of Chinese copper demand just sank to zero, another indication that global prices are not balanced with ...
The London Metal Exchange is imposing new rules surrounding the movement of metal in its warehousing network, taking aim ...
Iron ore futures prices ticked lower on Monday, weighed down by diminishing hopes of more stimulus in top consumer ...
The London Metal Exchange (LME) on Saturday banned from its system Russian metal produced on or after April 13 to comply ...
China’s state planner on Friday finalized a rule to set up a domestic coal production reserve system by 2027, aimed at ...
Chile’s SQM called another investors meeting at the request of its second-largest shareholder, Tianqi Lithium Corp., ...
Vietnam’s top miner Vinacomin plans to invest 182 trillion dong ($7.3 billion) to ramp up its alumina-aluminum ...
Copper traded near a 15-month high as supply concerns and brighter demand prospects triggered a slew of bullish calls on ...
Rare earths prices in top producer China jumped to their highest in more than seven weeks on Monday on a wave of ...
No comments have been posted yet ...