Aluminum Leads Base Metals Down on Dim Supply and Demand Balance
(Bloomberg) -- Aluminum extended its retreat from a two-month high as concerns about the strength of China’s demand recovery lingered, with supplies remaining sufficient. Other industrial metals also declined.
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Since Tuesday’s close, aluminum has retreated by more than 3%, paring what was a strong monthly gain. The discount of its spot price to the three-month contract on the London Metal Exchange widened to $29 a ton, a sign that immediate global supplies are ample.
“Aluminum supply remains elevated, while downstream demand recovery in China is limited,” Guangzhou Futures Co. said in a note that predicted the metal will decline further.
Aluminum fell 1.4% to $2,461 a ton on the LME as of 9:44 a.m. local time, trimming this month’s gain to just above 7%. Most base metals declined, with tin and lead also falling just under 1.4%. Copper declined 0.8%.
--With assistance from Mark Burton.
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