Speculators pushed aluminium prices above $3,000 a tonne for the first time since 1988 and copper hit record levels as investors piled back into commodities after a shaky start to the week.
Aluminium hit an 18-year peak of $3,027 in electronic trade, driven by the volume of buying by funds and other investors who have moved in as industrial metals outperform more traditional assets.
Copper hit a new record high of $7,815, zinc was $5 away from its record $3,490, platinum stormed to unprecedented levels and gold was at its strongest in 25 years.
Base metals wobbled on Monday, losing as much as 3% before recovering by the close. “Aluminium is catching up with the rest of the complex, it was always projected to hit $3,000 or beyond,” an LME trader was quoting saying in a leading financial daily,.
Sternby said stocks of the metal were falling, China appeared keen to rein in breakneck expansion by its power-hungry aluminium industry and demand was being buoyed by world growth. “The support we have seen in prices has resulted in a positive trend and above $3,200 is the technical goal.” Three-months aluminium on the London Metal Exchange was at $3,008/$3,018, up 2.6% from Monday’s $2,928 close.
