(Nov 10): Aluminium advanced with copper and other industrial metals as hopes rose for an end to a weeks-long shutdown of the US government.
A group of moderate Senate Democrats are backing a deal to reopen the government, according to people familiar with the matter. That’s boosting risk appetite across markets on Monday (Nov 10), with aluminium rising 1.1% to US$2,879.50 a tonne by 11.22am Shanghai time.
A restart would end a record-breaking suspension of the federal government that was beginning to undermine the outlook for the US economy. Metals mostly declined last week amid growing uncertainty about the Federal Reserve’s next interest rate cuts.
Aluminium — which reached a three-year high a week ago — has been one of the strongest performers on the London Metal Exchange in recent months, with investors weighing the impact of Chinese capacity curbs at a time of resilient demand.
Prices for the metal may stay elevated considering near-term bullish sentiment among fund investors, Jinrui Futures Co said in a note. Still, high margins for aluminium producers will likely limit further upside for prices, it added.
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In the copper market, traders are again paying big premiums to secure US-bound shipments, pointing to the return of the tariff trade that sent prices soaring earlier this year. The Trump administration is due to revisit plans for levies on refined copper next year.
Copper gained 0.8% on the LME to US$10,798 a tonne and rose 1.5% on Comex to US$5.031 a pound. Iron ore futures in Singapore fell 0.4% to US$100.85 a tonne.
The proposed deal at Congress would reopen the government and fund some departments and agencies through to Jan 30. The Senate and the House still need to pass the bill but US President Donald Trump said an ending to the shutdown is “getting closer”.
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