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Aluminium Pressured

Aluminium Pressured

Aluminium fell to a new low from June 2010 at $1,835 a tonne, mirroring falls in Shanghai aluminium which dropped to its lowest in more than three years on news China’s top aluminium producing province was giving some smelters a in their electricity bill, fuelling overcapacity fears “Investors who were holding a lot of aluminium stocks have been dumping those along with other base metals positions,” said a Shanghai-based trader with an international firm.
“While things look bad for aluminium, there isn’t a particular reason for selling the other metals.
I think these investors have been feeling bearish for a while now and the subsidy news gave them an excuse to do so,” he added.
LME aluminium later recovered to trade at $1,837, from Tuesday’s close of $1,845.
Other metals also fell to multi-month lows. Zinc dropped to its lowest since late October at $1,745, before recovering slightly to $1,750, from Tuesday’s close of $1,776. Lead hit its lowest since July 2010 at $1,742 a tonne, before recovering to $1,751.75 from Tuesday’s close of $1,768. Nickel fell to $16,244 from $16,275 a tonne while tin slipped to $18,450 from Tuesday’s close of $18,560.
In industry news, commodities trader Glencore, scrambling to save its $26 billion bid for miner Xstrata, will need to sweeten the terms or put its long-desired deal at risk after key shareholder Qatar threatened to oppose the offer.



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