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Aluminum Prices Slumps Two-month on Low


LONDON:Uncertainty regarding the impact of higher interest rates on economic growth and metals demand pushed aluminum prices to a two-month low on Friday.

Three-month aluminum prices on the London Metal Trade slipped 0.5% to $2,315 a ton by 1805 GMT subsequent to contacting the most vulnerable since Jan. 6.

Also Read :Copper Prices Rise As Limited Supply And Weaker Dollar

According to Capital Economics commodities economist Edward Gardner, “higher rates expectations are consistent with a more downbeat and cloudy view of metals demand, so it’s no surprise that prices have come down.”

After data showed that the US economy added jobs quickly in February, metals prices recovered their losses. This caused financial markets to lower their expectations that the Federal Reserve would raise interest rates by half a percentage point this month.

Also Read : Imports of Coal In China Surges To 71%, As Increase In Demand

After the data were released, the dollar index fell, making it cheaper for buyers who use other currencies to buy commodities priced in the US currency.

This week, US Fed Chair Jerome Powell said that the central bank might have to raise interest rates more than expected, which caused investors to worry that it might be too aggressive.

Prices were also impacted by uncertainty regarding demand in China, a major metals consumer, following its most recent party congress.

Gardner stated, “We saw out of that continued policy support for the property sector, but overall it disappointed some expectations of greater support from the government with the absence of a major stimulus package.” “We saw out of that continued policy support for the property sector.”

The market was also under pressure from increased supply.

China, the world’s top refined copper maker, purified 907,800 tons of copper in February, up 6.5% on-year and marginally higher than the normal 900,000 tons, as per Shanghai Metals Market, which expected Walk result would arrive at 949,500 tons.

Also Read : Imports of Steel, Aluminum Imposed Ban by Canadian Govt

However, participants stated that demand was increasing in China, as evidenced by a decline in stock prices.

On Friday, copper stocks in SHFE warehouses decreased by 10.8%, falling to 214,972 tonnes, for the second week in a row.

LME copper remained unchanged at $8,854 per tonne, while zinc fell 1.5% to $2,930, reaching its lowest level since November 28.

Nickel fell 2.4 percent to $22,700, lead fell 0.7 percent to $2,070, and tin fell 2.6 percent to $22,740.

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