Aluminum prices hit record low: summary

FILE PHOTO: Marked cylindrical aluminium ingots are seen stored at the foundry shop of the Rusal Sayanogorsk aluminium smelter outside the Siberian town of Sayanogorsk, Russia, March 15, 2017. REUTERS/Ilya Naymushin/File Photo

Source: X01151

What we know

Aluminum prices reached their lowest point in over three months as a result of what has been described as “increased selling from speculative funds.”
The broader metals market faced challenges due to weak data from China, a leading metals market, and the strength of the dollar, Reuters reported.
Three-month aluminum on the London Metal Exchange (LME) experienced a 0.4% decline, settling at $2,126.50 per metric ton, marking its lowest level since August 21.
The metal has seen a 10% decrease on the LME since reaching a five-month high in early October.
In official trading activity, LME copper saw a 1.1% drop to $8,360 per ton, nickel experienced a 1.7% decline to $16,525, zinc eased by 0.5% to $2,387.50, tin was down 0.5% at $24,450, and lead remained relatively unchanged at $2,025.

What they said

Strategist at broker Marex said “Aluminum is still seeing this CTA sell program where the short is building to considerable levels,” said Alastair Munro. He added that “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. A metals trader added further, “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.

Etornam Kornu