Metal markets steady as aluminum supply worries start to ease | Fin24
 
  • Mboweni on State Capture

    The new finance minister has described state capture as a 'great public sector heist'

  • Kganyago on Populism

    The central bank head says SA must learn economic lessons from Venezuela and Zimbabwe.

  • Up in the Air

    Uber Air could see SA shoppers flying to malls via skyports, says a company executive.

Loading...

Metal markets steady as aluminum supply worries start to ease

Apr 25 2018 13:26
Bloomberg News

Shanghai - After three weeks of intense volatility, metal markets seem to be calming down.

Aluminum steadied after a four-day selloff, which was driven the US decision to rein in harsh sanctions against United Rusal. Nickel advanced 1.4% as the Philippines moved forward with a plan to limit the area of land miners are permitted to exploit. Most other metals were little changed.

“Prices should revert to some extent,” Wei Lai, an analyst with Cofco Futures, said in Shanghai. “The worst time for Rusal has passed.”

Aluminum update: Consumers are buying pre-sanctions rusal metal

Aluminum’s breathtaking rally has been thrown into reverse after the US switched tack, saying on Monday it would provide sanctions relief if Oleg Deripaska relinquishes control of Rusal and extended the window for traders to stop dealings with the company.

Still, it’s unclear how much of Rusal’s trade will resume as the flow of aluminum and its raw materials depends on ports, shipping companies, banks and buyers all being comfortable in dealing with the Russian company.

UBS Group said the market is underestimating supply challenges. The bank forecast prices of $2 500 a ton in six months and $2 300 a ton in 12 months.

Aluminum was little changed at $2 231 a metric ton on Wednesday. Prices have given back roughly half the gains since sanctions were announced in early April.

In zinc, orders to withdraw the metal from warehouses tracked by the London Metal Exchange fell 12% to the lowest since 2012. Copper canceled warrants are also on the rise, notching the biggest four-day increase since 2010.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

equities  |  aluminium  |  markets
NEXT ON FIN24X

 
 
 
 

Company Snapshot

#MINIBUDGET2018

All eyes are on Tito Mboweni as he readies to deliver his maiden mini budget speech amid an ailing economy and eroded confidence.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

MiniBudget2018:

Previous results · Suggest a vote

Loading...