Reuters Africa
LME aluminium drops 1.5 pct on Fed warning, PMI
Edited by : AL CIRCLE
1 min read
Three-month aluminium on the London Metal Exchange fell 1.5 percent to $2,284 a tonne, the lowest level since December 8, on the Federal Reserve's warning of "significant" dangers to the U.S. economy and gloomy data out of China.
The Fed's comment came as it unveiled a $400 billion long-term debt purchase plan. Investors disappointed with the stimulus program sold off commodities, which were also weighed down by a firmer dollar.
China's factory sector contracted for a third consecutive month in September as flagging overseas demand put the brakes on new orders, HSBC's China Flash PMI showed on Thursday.
Analysts said that bargain hunting by Chinese investors was expected to limit losses in LME alumnium.
"With LME prices getting interesting enough to ramp up aluminum imports by China, further price declines...should find a floor at $2,180 a tonne," said UBS AG analyst Dominic Schnider in a recent note.
The Fed's comment came as it unveiled a $400 billion long-term debt purchase plan. Investors disappointed with the stimulus program sold off commodities, which were also weighed down by a firmer dollar.
China's factory sector contracted for a third consecutive month in September as flagging overseas demand put the brakes on new orders, HSBC's China Flash PMI showed on Thursday.
Analysts said that bargain hunting by Chinese investors was expected to limit losses in LME alumnium.
"With LME prices getting interesting enough to ramp up aluminum imports by China, further price declines...should find a floor at $2,180 a tonne," said UBS AG analyst Dominic Schnider in a recent note.
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