09 JUNE 2015<a href= http://af.reuters.com/article/metalsNews/idAFL3N0YU34820150608?sp=true' target='_blank'> Reuters </a>
Aluminium drops after data shows high Chinese exports
Edited by : AL CIRCLE
1 min read
Aluminium prices fell on Monday after data showed Chinese exports of the metal remained strong, highlighting worries about a glut of supply on the global market.
Copper was steady and some other metals were firmer after a bigger than expected slide in overall Chinese imports boosted hopes for more stimulus in the world's top metals consumer.
Three-month aluminium on the London Metal Exchange declined 0.5 percent to $1,741.50 a tonne by 1025 GMT after hitting a 14-month low of $1,726 on Friday.
Data on Monday showed Chinese exports of unwrought aluminium and products jumped 21 percent year-on-year to 410,000 tonnes, dipping only 5 percent from the previous month.
"The exports of aluminium and aluminium products were strong again in May, which was no huge surprise," said Nic Brown, head of commodities research at Natixis.
But the high exports in recent months, which have weighed on both LME prices and surcharges for physical material, may come to a halt in coming months, he added.
"All of a sudden there is no financial incentive for Chinese producers to send this material abroad. The local price is much better for them than the international price."
Copper was steady and some other metals were firmer after a bigger than expected slide in overall Chinese imports boosted hopes for more stimulus in the world's top metals consumer.
Three-month aluminium on the London Metal Exchange declined 0.5 percent to $1,741.50 a tonne by 1025 GMT after hitting a 14-month low of $1,726 on Friday.
Data on Monday showed Chinese exports of unwrought aluminium and products jumped 21 percent year-on-year to 410,000 tonnes, dipping only 5 percent from the previous month.
"The exports of aluminium and aluminium products were strong again in May, which was no huge surprise," said Nic Brown, head of commodities research at Natixis.
But the high exports in recent months, which have weighed on both LME prices and surcharges for physical material, may come to a halt in coming months, he added.
"All of a sudden there is no financial incentive for Chinese producers to send this material abroad. The local price is much better for them than the international price."
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