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Aluminum posts largest decline in nearly a year
Edited by : AL CIRCLE
1 min read
LME aluminum prices posted their steepest one-day decline in almost a year, say analysts with Harbor Intelligence. This occurred amid a stronger U.S. dollar and fresh speculative short selling, Harbor says.
Analysts say physical demand for primary and secondary remain healthy, considering seasonal patterns. “Nevertheless, further speculative selling was triggered by weak manufacturing activity data from China and afterwards by renewed eurozone debt woes,” Harbor says.
“Market fear surged taking the U.S. dollar back to near three-week highs and the VIX/fear index 18% up to levels above 30 again.” China’s official Purchasing Managers Index fell to 50.4 in October from 51.2 in September.
Meanwhile, Greece’s government called for a referendum on a debt-bailout plan, renewing default worries. LME aluminum fell $107, or 4.8%, to $2,111 per metric ton.
Analysts say physical demand for primary and secondary remain healthy, considering seasonal patterns. “Nevertheless, further speculative selling was triggered by weak manufacturing activity data from China and afterwards by renewed eurozone debt woes,” Harbor says.
“Market fear surged taking the U.S. dollar back to near three-week highs and the VIX/fear index 18% up to levels above 30 again.” China’s official Purchasing Managers Index fell to 50.4 in October from 51.2 in September.
Meanwhile, Greece’s government called for a referendum on a debt-bailout plan, renewing default worries. LME aluminum fell $107, or 4.8%, to $2,111 per metric ton.
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