Aluminium led Chinese metals futures higher on Tuesday amid a wave of bargain hunters buying up contracts on recent price dips as financial markets responded positively to easing of Hurricane Irma. The most-traded aluminium contract on the Shanghai Futures Exchange ended 3 percent higher at 16,610 yuan ($2,541.93) a tonne, hitting its highest in a week in the morning session.
ShFE Zinc added 2.4 percent, while ShFE nickel ended up 1.7 percent. Both metals, used in steelmaking, were benefiting from a rebound in Chinese steel prices following a 5-day losing streak. ShFE copper was also modestly firmer, while LME copper slipped 0.3 percent to $6,725 a tonne.
News that North Korea's anniversary celebrations on the weekend passed without a new missile test also spurred renewed investment in commodities, according to traders. "With apparent geopolitical and weather-related risks abating, investors piled back into riskier asset classes," ANZ Bank said in a note. "This saw precious metals suffer, while industrial commodities gained." China's imports of major commodities in August illustrate both why prices have gained in recent months and why this rally may be running out of steam.
Comments
Comments are closed.