Market Watch: Aluminum Hits One-Week High in Shanghai as Copper Declines

In Shanghai, aluminum futures reached a one-week high due to raw material supply risks, while copper prices declined. On the Shanghai Futures Exchange (SHFE), the December aluminum contract rose 0.3% to 20,840 yuan/ton ($2,925.73) after hitting its highest level since October 14 earlier in the session. On the London Metal Exchange (LME), three-month aluminum fell 0.2% to $2,628/ton at 02:58 GMT after rising in the previous session. The most-traded front-month alumina contract on SHFE was trading around 4,895 yuan after reaching a record high of 5,003 yuan on Tuesday. Alumina supply has been constrained due to a bauxite shortage caused by disruptions in Guinea, the world's second-largest bauxite producer after Australia.

Copper on SHFE fell 0.5% to 76,730 yuan/ton ($10,772.15), and on LME, copper decreased 0.3% to $9,550/ton as investors awaited further news on stimulus measures from China, the largest consumer. The dollar stayed at a two-and-a-half-month peak, making metals more expensive for holders of other currencies. China has recently announced a series of measures to stimulate the economy, but sluggish economic data highlights the need for further action. Analysts noted that the market is waiting for evidence of recovery in China's real economy despite a slew of supportive policy announcements and interest rate cuts. On the LME, nickel rose 0.3% to $16,365/ton, zinc fell 0.4% to $3,125/ton, lead increased 0.2% to $2,072.5/ton, and tin climbed 0.5% to $31,050/ton. On SHFE, nickel dropped 1.1%, zinc slipped 0.1%, lead remained flat, and tin declined 0.4%.