Aluminum gained for the second time in three sessions on speculation that demand will climb in China, the world’s top metals consumer.
A Chinese factory gauge rose last month, signaling that the government’s monetary easing has helped to cushion the economy. Goldman Sachs Group Inc. said Monday that more aluminum will probably be used in the nation’s electrical grid after updates from China’s National Energy Administration on metal standards. Inventories monitored by the London Metal Exchange are at the lowest since April 2009.
“A decline in stockpiles in always supportive as it helps the fundamental story,” Mike Dragosits, a senior commodity strategist at TD Securities in Toronto, said in a telephone interview. “There are expectations of further monetary easing in China,” which will keep demand supported, he said.
Aluminum for delivery in three months gained 1.3 percent to settle at $1,762 a metric ton at 5:50 p.m. on the LME. Prices have declined 4.9 percent this year amid a global glut.
Also in London, nickel and copper climbed, while lead, tin and zinc dropped. In New York, copper futures for July delivery slid 0.3 percent to $2.72 a pound.