(Bloomberg) -- Aluminum fell with other industrial metals, as the recent rally in prices runs into a lack of buying interest in China, the top consuming country.
The LMEX Metals Index, which tracks the six main base metals, rose to an eight-month high earlier in March, with copper breaching $9,000 a ton for the first time in nearly a year, after investors honed in on supply risks and bet on an improving global manufacturing outlook.
But consumption continues to disappoint in China, where the usual pickup in spring activity hasn't fully materialized. Buyers have been deterred by recent price gains, spot aluminum discounts are widening, and traders are dumping cargoes, Jinrui Futures Co. said in a note.
There was some cheer to be had in China's latest industrial profits data, which extended gains that began in August, although much of the strength could be attributed to the base effect of comparing to a weak 2023.
Aluminum fell 0.4% to $2,295 a ton on the London Metal Exchange as of 11:02 a.m. in Shanghai. Copper and zinc fell be similar amounts.
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