METALS-Aluminium hits near one-month high on signs of tighter China supply

By Kitco News / January 22, 2019 / www.kitco.com / Article Link


* China aluminium smelters losing $145/T -Commerzbank
* China zinc production 'very weak' -Deutsche Bank
* Stocks slump on IMF growth forecasts, China data (Adds closing prices, detail)By Maytaal AngelLONDON, Jan 22 (Reuters) - Aluminium prices hit theirhighest in nearly a month on Tuesday as investors brushed offweaker economic growth in China to focus on signs of fallingproduction.Trading volumes were thin ahead of the Lunar New Yearholiday, when China, the world's largest producer of aluminium,will shut for a week."We're heading into softer seasonal flows (but) nearly 3million tonnes of (Chinese aluminium) smelting capacity hasclosed and inventories are drawing on a counter-seasonal basis,"Deutsche Bank metals strategist Nick Snowdon said.But the wider outlook for metals is one of price stagnation,he said, because of a standoff between poor macroeconomic dataand upside policy risk such as further stimulus in China.China's economy cooled in the fourth quarter, hit byfaltering domestic demand and bruising U.S. tariffs, draggingannual growth to its lowest level in nearly three decades in2018 and pressuring Beijing for more stimulus.
* ALUMINIUM: Three-month aluminium on the London MetalExchange closed up 1.7 percent at $1,883 a tonne, havinghit its strongest since late December.


* CHINA ALUMINIUM: "The question is how long China canmaintain (its) recent record-high production rate, given Chinesesmelters are currently chalking up average losses equating to$145 per tonne," Commerzbank said in a note, citing data fromShanghai Metals Market.
* COPPER: Bellwether copper ended down 0.8 percentat $5,935 as global equities slumped after the InternationalMonetary Fund on Monday warned of a darkening growth outlook.
* CHILE COPPER: The union of supervisors at Chilean stateminer Codelco's Gabriela Mistral mine has rejected the company'sfinal offer for a new collective labour agreement, raising thespectre of a strike in the coming days.
* U.S.-CHINA: The United States will proceed with the formalextradition from Canada of Huawei executive Meng Wanzhou in amove certain to ratchet up tensions with China.
* BHP: Global miner BHP Groupraised its2019 copper production forecast to between 1.6 million and 1.7million tonnes.
* NICKEL DEFICIT: The global nickel market deficit narrowedto 4,900 tonnes last November from the previous month's deficitof 10,600 tonnes.
* OTHER METALS: Lead ended up 0.5 percent at $2,021a tonne, tin ended down 1.1 percent at $20,425, nickel closed down 1.9 percent at $11,580 while zinc ended down 0.5 percent at $2,576, having hit its highest sincemid-December.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top base and precious metals analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Tom Daly; Editing by Dale Hudson/DavidGoodman/Alexander Smith)

Messaging: maytaal.angel.thomsonreuters.com@reuters.net)))

LME price overview COMEX copper futures Base metals news All metals news All commodities news Metals diary Foreign exchange rates SPEED GUIDES)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Recent News

Upgrades continue for 2024 gold price target...

April 22, 2024 / www.canadianminingreport.com

Gold stocks edge up as weak equities offset metal rise

April 22, 2024 / www.canadianminingreport.com

Major investment banks make major gold price upgrades

April 15, 2024 / www.canadianminingreport.com

Gold stocks near flat as equities dip

April 15, 2024 / www.canadianminingreport.com

Revenue estimates for gold stocks have remained relatively flat

April 08, 2024 / www.canadianminingreport.com
See all >
Share to Youtube Share to Facebook Facebook Share to Linkedin Share to Twitter Twitter Share to Tiktok