01 JUNE 2015www.theedgemarkets.com
Aluminium set for biggest monthly loss in 2-1/2 yrs on supply glut
Edited by : AL CIRCLE
1 min read
Aluminium slid on Friday on continued worries about heavy output from China swamping the global market and was on track for its biggest monthly decline in over 2-1/2 years.
Three-month aluminium on the London Metal Exchange dropped 1 percent to $1,758 a tonne by 0943 GMT after gaining 2.2 percent on Thursday.
Aluminium is set for a loss of 8.7 percent in May, the biggest monthly drop since October 2012, as data showed Chinese output rose to 2.59 million tonnes in April.
"I definitely see more downside risks than upside potential for aluminium because of the supply glut," said analyst Daniel Briesemann at Commerzbank in Frankfurt.
"Looking at the technical side, I wouldn't be surprised to see the price to drop to $1,700 and it would be very interesting if it crashes through this level."
Three-month aluminium on the London Metal Exchange dropped 1 percent to $1,758 a tonne by 0943 GMT after gaining 2.2 percent on Thursday.
Aluminium is set for a loss of 8.7 percent in May, the biggest monthly drop since October 2012, as data showed Chinese output rose to 2.59 million tonnes in April.
"I definitely see more downside risks than upside potential for aluminium because of the supply glut," said analyst Daniel Briesemann at Commerzbank in Frankfurt.
"Looking at the technical side, I wouldn't be surprised to see the price to drop to $1,700 and it would be very interesting if it crashes through this level."
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