LONDON: Aluminium prices fell to their lowest in almost four months as some bullish positions were scrapped amid concerns about demand with a lack of fresh stimulus in top consumer China.
Three-month aluminium on the London Metal Exchange lost 1.5% to $2,316 per metric ton in official open-outcry trading after hitting $2,311, its lowest since March 28, breaking below its 200-day moving average of $2,354.
"Long liquidation continues onshore and on the LME. Nothing positive to see from our nano data readings," said Alastair Munro, senior base metals strategist at brokerage Marex.
Prices for aluminium, used in the construction, transportation and packaging sectors, are down 17% since hitting their highest in almost two years in late May.
Metal markets were looking for signs that the Chinese government would take action to address the country's prolonged property slump, the biggest driver of industrial metals demand.
However, last week's key political meeting failed to lay our more policies to prop up demand for metals, said ING commodities analyst Ewa Manthey.
"Without further stimulus measures, there is little hope for a near-term recovery for the property and construction sector. We expect copper and other industrial metals prices to decline further in the near term to reflect a softer demand outlook in China," Manthey said.
Adding further pressure on aluminium from the supply side, global aluminium output rose by 4% in the first half of 2024, driven mainly by higher production in China.
Meanwhile, LME copper eased 0.6% to $9,250 a ton in official activity after touching $9,197, its weakest since April 3.
The metal is down 17% since reaching a record high on May 20, and this has revived some physical buying in China. The premium to import copper into China rose to $9 a ton on Friday, the highest since April 15.
Zinc was down 1.9% at $2,725, lead fell 1.6% to $2,095, tin dropped 2.3% to $30,325 and nickel slipped 0.8% to $16,120.
- Reuters
Created by Tan KW | Sep 06, 2024
Created by Tan KW | Sep 06, 2024
Created by Tan KW | Sep 06, 2024