04 AUGUST 2015AlCircle.com
Aluminium hits six-year low as manufacturing weakens in China
Edited by : AL CIRCLE
2 min read
Aluminum falls to a six-year low after manufacturing weakened in China, the largest metals user.
A private Chinese factory gauge released on August 3 fell to a two-year low in July and an official index last week slipped to the lowest in five months, adding to a near-$4 trillion rout in Chinese stocks. The country uses about 50 percent of the world’s aluminum.
“It’s no surprise, but this is just another piece of bad news,” said Nic Brown, head of commodity research at Natixis SA. “What we need to see now in the industrial metals market is what China is going to do in order to support growth over the coming years.”
Commodity prices have slumped to the weakest level in 13 years as supply gluts emerged in everything from oil to metals and crops. The Bloomberg Index of Industrial Metals fell to the lowest in six years. Aluminum lost as much as 1 percent to $1,601.50 a ton, the lowest since July 2009.
In China, the Caixin final manufacturing Purchasing Managers’ Index slipped to 47.8 in July, the lowest since July 2013. The official gauge was at 50 last month, compared with the median estimate of 50.1 and down from June’s 50.2. Numbers above 50 indicate expansion.
A private Chinese factory gauge released on August 3 fell to a two-year low in July and an official index last week slipped to the lowest in five months, adding to a near-$4 trillion rout in Chinese stocks. The country uses about 50 percent of the world’s aluminum.
“It’s no surprise, but this is just another piece of bad news,” said Nic Brown, head of commodity research at Natixis SA. “What we need to see now in the industrial metals market is what China is going to do in order to support growth over the coming years.”
Commodity prices have slumped to the weakest level in 13 years as supply gluts emerged in everything from oil to metals and crops. The Bloomberg Index of Industrial Metals fell to the lowest in six years. Aluminum lost as much as 1 percent to $1,601.50 a ton, the lowest since July 2009.
In China, the Caixin final manufacturing Purchasing Managers’ Index slipped to 47.8 in July, the lowest since July 2013. The official gauge was at 50 last month, compared with the median estimate of 50.1 and down from June’s 50.2. Numbers above 50 indicate expansion.
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