Aluminum retreated on expected increase in global oversupply

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Scanpix/Reuters
Industrial metals apart from nickel dropped on Monday amid uncertainty over Spain and deepening slowdown in China. However, weak China‘s data coupled with lower inflationary pressure spurred speculation that the POBC will ease its prudent monetary policy. Meanwhile, the US releases were supportive as a surge in retail sales limited losses of base metals' pack.

Aluminum retreated amid expected increase in global surplus as China's aluminum output remained high while world's demand is weakening.

Copper shed 0.44% as inventories in Shanghai rose by 16% last week. At the same time, signs that the US economy is rebounding limited the downswing of the red metal.

Nickel was the only gainer despite weak results of Chinese steel makers. China's steelmakers posted a loss of 4.2 billion Yuan in August.

Zinc prolonged its slump on global growth concerns and high inventories at the LME warehouses.


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