- Decline on Wednesday would be longest losing streak since July
- Aluminum `to stay miserable,' will force closures: Ospraie
Aluminum fell for a sixth day, the longest slump in three months, on concern that a glut will worsen amid weakening demand in China, the world’s biggest metals consumer.
The Asian nation is boosting aluminum production at the same time that economic growth is expected to be the slowest in decades, adding to the outlook for a global surplus. Dwight Anderson, the founder of hedge fund Ospraie Management, said he saw little reason for short-term optimism on industrial metals.
“Aluminum is miserable and is going to stay miserable and will have to force closures and bankruptcies,” Anderson said in an interview with Bloomberg TV Tuesday.
Chinese shares retreated from a two-month high as weak trade data from Japan underscored sliding global demand. BNP Paribas SA expects global output of aluminum to exceed demand by 1 million metric tons this year.
Aluminum for delivery in three months fell 1.9 percent to settle at $1,515 a ton at 5:50 p.m. on the London Metal Exchange. Prices haven’t dropped for six straight days since July 23. The commodity retreated as much as 2.2 percent to the lowest since Aug. 24.
Copper declined 0.5 percent to $5,175 a ton ($2.35 a pound), a fourth day of losses. Lead, nickel and zinc also dropped on the LME, while tin was unchanged.
The global refined-copper market had an 8,000-ton surplus in July, reversing a 16,000 ton deficit in June, the International Copper Study Group said on Tuesday.
Copper futures December delivery dropped 0.2 percent to $2.3605 a pound on the Comex in New York.