LONDON, Aug 20 (Reuters): Aluminium prices hit their five-week high on Tuesday on increased fund buying and a shortage of raw material in top producer China.
Three-month aluminium on the London Metal Exchange earlier touched $2,482 per metric ton, the highest since July 15. It last traded up 1.4 per cent at $2,479, as of 1113 GMT.
The momentum continued after a strong rally of 3.4 per cent in the previous session breaking the 50-day moving average.
"Aluminium was too cheap one month ago. Funds are picking up, now the rally is restoring its fair value," Daniel Smith with Amalgamated Metal Trading Ltd said.
Negative sentiment is fading from investors, with some commodity trading advisor (CTA) funds starting to build a net-long position in the light metal, he added. Also supporting aluminium prices are China's surprising growth in import despite robust domestic production, Smith said.
China bought 129,898 tonnes of primary aluminium in July, up 11.5 per cent year on year, customs data showed on Tuesday.
Aluminium hits 5-week high
FE Team | Published: August 20, 2024 20:51:34
Aluminium hits 5-week high
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