Tags: Aluminum | Record | Gains | Supplies

Aluminum Sets Record Run of Monthly Gains as Supplies Shrink

Friday, 29 August 2014 02:34 PM

Aluminum posted its longest-ever run of monthly advances as faster U.S. expansion added to signs of rising metals demand amid shrinking inventories.

The U.S. economy, the world’s largest, grew more than previously forecast in the second quarter, government data showed Thursday. Orders for durable goods jumped in July by the most on record as bookings surged for commercial aircraft, the Commerce Department said Aug. 26. A standard Boeing 747 jumbo jet contains about 75 metric tons of aluminum, according to the AluMatter website.

Prices have surged 16 percent this year as stockpiles tracked by the London Metal Exchange fell to a two-year low. Demand has climbed as carmakers including Ford Motor Co. use aluminum to replace heavier steel. U.S. automobile sales are near an eight-year high, according to Ward’s Automotive Group.

“This move toward making cars more economic and light is maintaining healthy demand,” Ole Hansen, head of commodities strategy at Saxo Bank A/S, said in a telephone interview from Copenhagen. “Supporting economic news this week is what attracted traders into aluminum.”

Aluminum for delivery in three months climbed 0.7 percent to settle at $2,096.50 a ton at 5:50 p.m. on the LME, after touching $2,119.50, the highest since February 2013. Prices capped a seventh straight monthly gain, the longest streak since records began in 1987.

Demand for the metal will exceed production by 1.8 million tons this year and 1.5 million tons in 2015, according to Standard Chartered Plc. LME-tracked stockpiles fell 3.3 percent this month to 4.8 million tons, the lowest since July 2012.

Also in London, zinc, nickel and tin climbed, while lead dropped. Copper for delivery in three months rose 0.7 percent to $6,982 a ton ($3.17 a pound).

On the Comex, copper futures for December delivery rose 0.3 percent to $3.1605 a pound. The exchange will be closed Monday for the U.S. Labor Day holiday.

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Aluminum posted its longest-ever run of monthly advances as faster U.S. expansion added to signs of rising metals demand amid shrinking inventories.
Aluminum, Record, Gains, Supplies
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2014-34-29
Friday, 29 August 2014 02:34 PM
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