BASIC METALS-Aluminum hits 15-month high, copper rises

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BASIC METALS-Aluminum hits 15-month high, copper rises




Archive image of aluminum ingots at a Novelis aluminum flat rolled products factory in Sierre


© Reuters/Denis Balibouse
Archive image of aluminum ingots at a Novelis aluminum flat rolled products factory in Sierre


By Pratima Desai

LONDON, Oct 16 (Reuters) – Aluminum rose on Friday, hitting a 15-month high on a lower dollar, strong Chinese demand and expectations of higher growth and demand in the rest of the world, with gains also for copper.

* At 1033 GMT, benchmark aluminum on the London Metal Exchange (LME) was up 0.49% at $ 1,861 a tonne. Prices for metal used in the transportation, construction and packaging industries hit $ 1,864 earlier, their highest level since July 2019.


File photo of copper cathodes stored in a warehouse in Shanghai


© Reuters / Carlos Barria
File photo of copper cathodes stored in a warehouse in Shanghai


“The macro outlook is positive, the dollar is weaker and demand from China has been very strong,” said Richard Fowler, strategist at Simpson Spence Young. “We are in a pretty strong uptrend.”

* Chinese imports of raw aluminum and aluminum products totaled 429,464 tonnes in August, the highest in more than 11 years, after reaching 119,145 tonnes in May.

* Three-month copper on the LME was up 0.06% at $ 6,753 a tonne at 1033 GMT, extending gains into a third session.

* The red metal’s advance was supported by hopes of strong demand in China and risks of supply disruptions, outweighing fears that a resurgence of COVID-19 cases in Europe would weaken the momentum of the global economic recovery.

* The decline in the dollar made dollar-denominated commodities cheaper for holders of other currencies, which could boost demand and prices.

(Report by Pratima Desai. Edited in Spanish by Janisse Huambachano)

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