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Industrial Metals Tumble amid Negative Fundamentals

February 22, 2013 at 21:18 by Vladimir Vyun

Aluminum fell today and posted the biggest weekly drop in 14 months on speculations that Chinese supply will add to global surplus. Other industrial metals, including copper, also declined.

The International Aluminium Institute reported that Chinese output climbed as much as 16 percent in January from a year ago. According to the IAI, global production grew 5.7 percent to 3.917 million metric tons. Global supply outpaced demand by 419,400 tons last year, according to the World Bureau of Metal Statistics.

Metals were also weakened by the risk-adverse sentiment on markets. The traders’ mood was lifted somewhat after the Ifo Business Climate Index climbed from 104.3 in January to 107.4 in February, much more than analysts have anticipated. Yet this was not enough to completely remove worries of investors, especially after the negative news from the United States.

Contract for delivery of aluminum in three months ticked down as much as $27 (1.28 percent) to $2,076 per metric ton as of 21:11 GMT on LME today. Three-month futures for copper declined $99 (1.24 percent) to $7,861 per ton. Zinc dropped $21 (0.98 percent) to $2,112 per ton and tin tumbled $625 (2.63 percent) to $23,100 per ton.

If you have any questions and comments on the commodities today, use the form below to reply.

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