27 FEBRUARY 2013Bloomberg
Aluminum Falls as Commodities Slide due to euro-area debt crisis
Edited by : AL CIRCLE
2 min read
Aluminum fell for a seventh session in London as commodities slid amid concern that the euro-area debt crisis might worsen, following an inconclusive election in Italy.
The Standard & Poor’s GSCI Spot Index of 24 raw materials fell to the lowest since Jan. 17. China, the biggest aluminum consumer, is set to have a “significant” surplus of about 700,000 metric tons that is likely to be partly shipped in the form of semi-fabricated products, according to Goldman Sachs Group Inc.
“There is selling across the board as there is so much uncertainty because of Italy,” Walter de Wet, an analyst at Standard Bank Plc, said today in a telephone interview. “The fundamentals are also very weak.”
Aluminum for delivery in three months declined 0.5 percent to $2,027.50 a metric ton at 3:09 p.m. local time on the London Metal Exchange. Prices earlier touched $2,010, the lowest since Nov. 29.
Federal Reserve Chairman Ben S. Bernanke is due to testify before U.S. lawmakers today and tomorrow. He may face questions on how the central bank’s $3.1 trillion balance sheet will affect an exit from its stimulus program.
“The market will be closely watching what Bernanke says over the next two days to get an idea about whether the stimulus program will end this year or not,” de Wet said.
Copper for three-months delivery rose 0.3 percent to $7,860 a ton ($3.57 a pound) on the LME. Stockpiles monitored by the exchange increased for a ninth session to 438,375 tons, the highest since Oct. 25, 2011. Zinc, lead and tin climbed in London. Nickel fell.
Copper futures for May delivery gained 0.1 percent to $3.566 a pound on the Comex in New York. Volume was more than double the average in the past 100 days.
The Standard & Poor’s GSCI Spot Index of 24 raw materials fell to the lowest since Jan. 17. China, the biggest aluminum consumer, is set to have a “significant” surplus of about 700,000 metric tons that is likely to be partly shipped in the form of semi-fabricated products, according to Goldman Sachs Group Inc.
“There is selling across the board as there is so much uncertainty because of Italy,” Walter de Wet, an analyst at Standard Bank Plc, said today in a telephone interview. “The fundamentals are also very weak.”
Aluminum for delivery in three months declined 0.5 percent to $2,027.50 a metric ton at 3:09 p.m. local time on the London Metal Exchange. Prices earlier touched $2,010, the lowest since Nov. 29.
Federal Reserve Chairman Ben S. Bernanke is due to testify before U.S. lawmakers today and tomorrow. He may face questions on how the central bank’s $3.1 trillion balance sheet will affect an exit from its stimulus program.
“The market will be closely watching what Bernanke says over the next two days to get an idea about whether the stimulus program will end this year or not,” de Wet said.
Copper for three-months delivery rose 0.3 percent to $7,860 a ton ($3.57 a pound) on the LME. Stockpiles monitored by the exchange increased for a ninth session to 438,375 tons, the highest since Oct. 25, 2011. Zinc, lead and tin climbed in London. Nickel fell.
Copper futures for May delivery gained 0.1 percent to $3.566 a pound on the Comex in New York. Volume was more than double the average in the past 100 days.
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