21 OCTOBER 2015bloomberg.com
Aluminum hits eight-week low as metals drop on China demand woes
Edited by : AL CIRCLE
1 min read
Aluminum dropped to the lowest in almost eight weeks as other industrial metals retreated amid mounting concerns about demand in China, the world’s biggest raw-materials consumer.
China Electricity Council cut its estimate on power-consumption growth this year after third-quarter usage failed to meet expectations, the Shanghai Securities News reported Tuesday. A looming bond default by Sinosteel Co., a Chinese state-owned steel trader, is highlighting the nation’s worsening corporate finances as an economic slowdown deepens. The country reported Monday the slowest quarterly growth since 2009, while its industrial output last month climbed less than the gain in August and the market consensus.
“It certainly paints a picture of weaker demand,” Mike Dragosits, a senior commodity strategist at TD Securities in Toronto, said in a telephone interview. “Aluminum is still suffering from this oversupply situation.”
Aluminum for delivery in three months fell as much as 1.1 percent to $1,532.50 a metric ton on the London Metal Exchange, the lowest since August 26. Prices extended declines after inventories in warehouses tracked by the LME rose for the first time since September 28. The metal settled at $1,545 in London, down 0.3 percent.
China Electricity Council cut its estimate on power-consumption growth this year after third-quarter usage failed to meet expectations, the Shanghai Securities News reported Tuesday. A looming bond default by Sinosteel Co., a Chinese state-owned steel trader, is highlighting the nation’s worsening corporate finances as an economic slowdown deepens. The country reported Monday the slowest quarterly growth since 2009, while its industrial output last month climbed less than the gain in August and the market consensus.
“It certainly paints a picture of weaker demand,” Mike Dragosits, a senior commodity strategist at TD Securities in Toronto, said in a telephone interview. “Aluminum is still suffering from this oversupply situation.”
Aluminum for delivery in three months fell as much as 1.1 percent to $1,532.50 a metric ton on the London Metal Exchange, the lowest since August 26. Prices extended declines after inventories in warehouses tracked by the LME rose for the first time since September 28. The metal settled at $1,545 in London, down 0.3 percent.
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