Aluminium prices fall as funds step up selling of commodity

Global aluminium prices are closely watched in Ireland because of the huge Rusal-owned Aughinish Alumna facility in the Shannon Estuary

Aluminium prices are clsoely watched in Ireland due to the Aughinish Alumna facility in the Shannon Estuary.

Mon, 11 Dec, 2023 - 19:00

Aluminium prices touched their lowest in more than three months as speculative funds stepped up selling on expectations of rising inventories.

Weak data in top metals market China and a strong dollar weighed on the wider metals market. Three-month aluminium on the London Metal Exchange, or LME, fell 0.5% to $2,123 a metric ton, its weakest since late August.

Aluminium prices are clsoely watched in Ireland because of the huge Rusal-owned Aughinish Alumna facility in the Shannon Estuary.

Aluminium, used in construction, transport, and packaging, has slid 10% on the LME since touching a five-month peak in early October. “Aluminium is still seeing this CTA sell programme where the short is building to considerable levels,” said strategist at broker Marex, Alastair Munro. Commodity Trade Advisor (CTA) investment funds are largely driven by computer programs.

There are also worries about excess supply showing up in LME warehouses next week, Mr Munro added. UBS analyst Daniel Major said in a note that aluminium was facing headwinds, but prices likely had limited downside.

Copper and most other base metals slipped after consumer prices in China fell at the fastest rate in three years last month while factory gate deflation deepened.