Aluminum Prices Jump Most in Five Months After Dollar TumblesLuzi Ann Javier
Aluminum rose the most since July, pacing gains in industrial metals, as the dollar weakened.
The euro jumped to the highest in more than two years against the greenback, boosting the appeal of commodities as alternative assets. Investors added $3.2 trillion to the value of global stock markets since the start of the quarter on mounting confidence that global economies are accelerating. The London Metal Exchange Index of six components is headed for the fifth monthly gain since June as robust growth increases demand prospects.
“The firmer tone in metals will likely continue into the early part of next week as the weaker dollar provides something of a tail-wind for commodities to move higher,” Edward Meir, an analyst at INTL FCStone inc. in New York, wrote in a note today.
Aluminum for delivery in three months climbed 3 percent to settle at $1,810 a metric ton at 5:50 p.m. on the LME, the biggest gain since July 1. Lead, zinc and nickel also advanced in London, while tin fell.
On the Comex in New York, copper futures for delivery in March slipped 0.4 percent to $3.385 a pound after rising 2.8 percent in the previous two sessions. Copper for delivery in three months gained 1.4 percent to $7,382 a ton ($3.35 a pound) on the LME, which was shut yesterday and Dec. 25.
The premium that buyers in China, the world’s largest copper user, pay to import the metal dropped 10 percent this month as demand weakened amid rising funding costs and curbs on the metal’s use as collateral in financing transactions, according to SMM Information & Technology Co.