30 DECEMBER 2014AlCircle.com
Aluminium recovers from a six-month low to boost the Chinese economy
Edited by : AL CIRCLE
1 min read
The ever slowing Chinese economy can find respite in the recovering aluminium prices that have rebounded from its six-month low prices with the prospects of a positive spur in the economic growth of the world’s biggest consumer of the metal.
On Sunday the aluminium prices in London had dipped to its lowest since July 17, which recovered by 0.6% on Monday. The final reading for HSBC Holdings and Mrkit Economics’ manufacturing purchasing managers’ index for China is due to release on December 31 and is suspected to be around 49.5 signifying contraction.
“In the short-term, the market will be looking at how the Chinese government will take action,” to stimulate the economy, said Tetsu Emori, a senior fund manager at Astmax Asset Management Inc. in Tokyo. “Now might be a good time to take long positions for the next half-year.” The aluminium for three month delivery gained 0.5% to $1,869 per tonne on the London Metal Exchange. The metal in general has risen 3.8% in 2014.
On Sunday the aluminium prices in London had dipped to its lowest since July 17, which recovered by 0.6% on Monday. The final reading for HSBC Holdings and Mrkit Economics’ manufacturing purchasing managers’ index for China is due to release on December 31 and is suspected to be around 49.5 signifying contraction.
“In the short-term, the market will be looking at how the Chinese government will take action,” to stimulate the economy, said Tetsu Emori, a senior fund manager at Astmax Asset Management Inc. in Tokyo. “Now might be a good time to take long positions for the next half-year.” The aluminium for three month delivery gained 0.5% to $1,869 per tonne on the London Metal Exchange. The metal in general has risen 3.8% in 2014.
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