METALS-Aluminium breaks six-session losing streak as markets recover

By Kitco News / October 12, 2018 / www.kitco.com / Article Link


* Aluminium holds above band of technical support
* Shanghai zinc inventories jump 48.5 pct over two weeks (Updates with closing prices)By Eric OnstadLONDON, Oct 12 (Reuters) - Aluminium rebounded on Friday,breaking a six-session losing streak, as speculators andconsumers regarded the lower prices as good value against abackground of recovering share markets.The metal touched a two-week low on Thursday amid a broadsell-off sparked by a global rout in equities.But global shares were having their best day in nearly amonth on Friday as European and Asian markets recovered. "Asia equity markets strengthened last night and then Europefollowed as well, so that is being poured into the metals spaceand we're seeing some technical, momentum buying," said GeordieWilkes, head of research at Sucden Financial in London."It looks as though some of these CTA (Commodity TradingAdvisor) funds have seen some of these technical levels hold andcome into the market."Aluminium hit a 3-1/2-month peak of $2,267 on Oct. 4 due tofears of alumina shortages, but when those worries subsided,prices gave up 11 percent.The market hit a low of $2,017.50 on Thursday, holding abovea band of support that has kicked in during the past few months,with consumers also on the buying side, traders said.London Metal Exchange three-month aluminium closed
up 1 percent at $2,041 a tonne. Prices lost 4.5 percent thisweek, extending 2018's drop to 12 percent.

* COPPER IMPORTS: Copper prices were supported after datashowed China's unwrought copper imports surged to their highestin 2-1/2 years in September, while copper concentrate importsclimbed to an all-time high. LME copper climbed 1 percent to finish at $6,302 atonne after closing flat in the previous session. It logged anear 2 percent gain for the week.


* ZINC STOCKS: Zinc inventories in warehouses monitored bythe Shanghai Futures Exchange surged 48.5 percent over the pasttwo weeks to 43,373 tonnes, data showed on Friday. LME zinc prices , however, seemed to shrug off thosepotentially bearish signals, rising 1.5 percent to end at $2,645a tonne.
* CHINESE EXPORTS: Helping to cap gains in metals prices wasdata showing an unexpected acceleration in Chinese export growthin September and a record trade surplus with the United States,which could exacerbate an already-heated dispute between Beijingand Washington.
* NICKEL: Nickel dipped 0.2 percent to finish at$12,655 a tonne. "The market has been capped into the $13,000area this week with Chinese selling evident. A break above therewould open up potential for $13,300," Alastair Munro at brokerMarex Spectron said in a note.
* PRICES: Lead was the best performer, climbing 2.6percent to close at $2,051.50 a tonne, while tin shed0.8 percent to $19,125.
* For the top stories in metals and other news, click or <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top base and precious metals analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Eric Onstad; Editing by Dale Hudson, ElaineHardcastle and Kirsten Donovanh)

Reuters Messaging: eric.onstad.thomsonreuters.com@reuters.net))

LME price overview COMEX copper futures Base metals news All metals news All commodities news Foreign exchange rates SPEED GUIDES)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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