Optimism in China pushes base metals higher Aluminum prices hit 8-month high
December 28, 2023
LONDON (Reuters) - Base metals on the London Metal Exchange (LME) rose on Wednesday as data showed manufacturing activity in China, the biggest consumer, improved last month.Weakness in the dollar also provided support for the metals market.
Analysts said three-month aluminum prices rose to an eight-month high, driven by technical buying and supply concerns.
Three-month aluminum rose 2% to $2,373.5 a metric ton, earlier hitting $2,382 a metric ton, the highest level since May 2.
Analysts said buying by commodity trading advisers provided support for the market.
China's double-digit growth in industrial profits in November further supported investors' optimism about the market.
The market is focused on bauxite supplies from Guyana, the world's third-largest bauxite producer.
LME data showed aluminum inventories rose to a four-month high of 523,725 tons.
Hundreds of workers in Indonesia's nickel industry held a peaceful rally on Wednesday, demanding higher safety standards after a fatal accident.However, business operations were not affected.
LME three-month copper rose 0.5% to $8,616 a metric ton; three-month zinc rose 1.1% to $2,630; three-month lead climbed 0.8% to $2,080; three-month nickel rose 2.3% to $16,885; Three-month tin rose 3% to $25,605.
