Aluminium hits 4-year low as stocks rise Lead falls 3.9% to a 2-1/2 year low of $1,043
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Industrial metals edged lower on Wednesday, with aluminium touching a 4-year low, as concerns over weakening demand, rising inventories and a firmer dollar dragged on sentiment. Copper for three-month delivery on the London Metal Exchange (LME) shed as much as 1.9 per cent to a low of $3,486 a tonne versus $3,555 on Tuesday. At 1031 GMT, the metal was at $3,500.
Aluminium fell to $1,669, its lowest level since September 2004, and was last trading at $1,675 from $1,700.
Negative macroeconomic news flow painted an ever-gloomier picture on demand for base metals - aluminium being particularly hit hard. The metal's weakness was not helped when data showed the US monthly auto sales plunged nearly 37 per cent to the lowest level since 1982, forcing automakers to slash production.
The German auto industry also took a battering - this year it is headed for the worst domestic car sales since the country's reunification in 1990. The impact that a slowing global economy is having on demand for metals was further highlighted by the level of stocks of aluminium in LME warehouses. Stocks have risen 12,750 tonnes to 1.83 million tonnes, its highest since November 1994.
DOLLAR CLIMBS
In addition to the negative auto data, the dollar rose against the euro, giving more problems to miners that sell metals in the US currency. Prices of battery material lead fell 3.9 per cent to a 2-1/2 year low of $1,043. It was last at $1,045 versus $1,085.
Tin was at $11,850 against $12,000 on Monday, and nickel was at $9,450 from $9,500. Zinc lost $19 to 1,150 - its fall aided by a rise in LME stocks of 9,326 tonnes to 202,750 tonnes, its highest level since July 2006.
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Source : Business Line |
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