27 OCTOBER 2014<a href=http://www.bloomberg.com/ ' target='_blank'> Bloomberg</a>
Aluminum caps biggest two-day slide in three weeks
Edited by : AL CIRCLE
1 min read
Aluminum capped the biggest two-day loss in three weeks as signs of a weaker housing market raised concern that demand will slow in China, the world’s top metals consumer.
New-home prices fell in all but one Chinese city monitored by the government in September, the nation’s statistics bureau said today. Aluminum’s uses in construction include sheet products for roofing and wall cladding, according to Rio Tinto Group, which produces the lightweight metal.
“The construction sector is one of the major consumers of aluminum,” Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt, said in a telephone interview. “If the construction sector is going to cool down, as falling home prices in China might suggest, it would have a negative impact on demand.”
Aluminum for delivery in three months fell 1 percent to close at $1,968 a metric ton at 5:51 p.m. on the London Metal Exchange, leaving the metal down 2.2 percent in two days, the biggest such loss since Oct. 2.
Real estate accounts for about one-third of China’s primary aluminum demand, according to Investec Ltd. The metal posted its first weekly decline since Oct. 3.
New-home prices fell in all but one Chinese city monitored by the government in September, the nation’s statistics bureau said today. Aluminum’s uses in construction include sheet products for roofing and wall cladding, according to Rio Tinto Group, which produces the lightweight metal.
“The construction sector is one of the major consumers of aluminum,” Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt, said in a telephone interview. “If the construction sector is going to cool down, as falling home prices in China might suggest, it would have a negative impact on demand.”
Aluminum for delivery in three months fell 1 percent to close at $1,968 a metric ton at 5:51 p.m. on the London Metal Exchange, leaving the metal down 2.2 percent in two days, the biggest such loss since Oct. 2.
Real estate accounts for about one-third of China’s primary aluminum demand, according to Investec Ltd. The metal posted its first weekly decline since Oct. 3.
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