(Bloomberg) -- Aluminum halted its longest run of daily gains in more than three years, as traders stepped back from a rally fueled by improved optimism for global growth. Most other industrial metals rose.
Aluminum slipped as much as 2% on the London Metal Exchange, after closing on Tuesday at its highest level in more than six weeks. Most metals have rebounded since July as concerns about the global economic outlook start to subside and the US Federal Reserve moves closer to interest-rate cuts.
But some caution is creeping back in, Shanghai Metals Market Analyst Li Jiahui said by phone. There has been some destocking in China, though the outlook for demand and the economy remains uncertain.
The aluminum market is in a complex transition, especially in China where demand from traditional sectors like construction is fading even as “green” consumption expands from a low base. Global aluminum demand growth falls by nearly two percentage points for every percentage-point slowdown in China’s economic growth, Goldman Sachs Group Inc. wrote in a recent note.
Aluminum declined 1.5% to $2,465 a ton by 3:41 p.m. on the LME.
Other metals were mostly higher, with zinc rising by 1.4%. China’s major zinc smelters met Wednesday to discuss possible output cuts, after tight global supplies of concentrate and weak demand forced spot processing fees into negative territory.
Copper was edged higher as investors await a flow of commentary from central bankers gathered in Jackson Hole, Wyoming, for the Fed’s annual symposium.
--With assistance from Mark Burton and Sana Pashankar.
©2024 Bloomberg L.P.