30 APRIL 2015www.themercury.com.au
Three-month aluminium on the London Metal Exchange improves
Edited by : AL CIRCLE
1 min read
Aluminium has surged to a two-and-a-half-month high, pushed up by speculative buying, but some analysts doubt how long the rally can last given expectations of high Chinese exports.
THREE-MONTH aluminium on the London Metal Exchange ended up 2.1 per cent at $US1,874 a tonne, its highest since early February.
A trader said buying from speculators was triggered when prices broke through resistance at $US1,845.
"We've seen some pretty strong CTA (commodity trading adviser) buying coming in to the market, but certainly the overall fundamental picture still remains relatively soft," said Nicholas Snowdon, analyst at Standard Chartered.
"The risk of Chinese primary exports and signs of ongoing softness in the Western physical market are the two factors that suggest that the rally should be sold into." However, the deputy chief executive of United Company Rusal, the world's top aluminium producer, said worries about Chinese aluminium flooding the global market were not justified.
THREE-MONTH aluminium on the London Metal Exchange ended up 2.1 per cent at $US1,874 a tonne, its highest since early February.
A trader said buying from speculators was triggered when prices broke through resistance at $US1,845.
"We've seen some pretty strong CTA (commodity trading adviser) buying coming in to the market, but certainly the overall fundamental picture still remains relatively soft," said Nicholas Snowdon, analyst at Standard Chartered.
"The risk of Chinese primary exports and signs of ongoing softness in the Western physical market are the two factors that suggest that the rally should be sold into." However, the deputy chief executive of United Company Rusal, the world's top aluminium producer, said worries about Chinese aluminium flooding the global market were not justified.
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