LONDON, Jan. 8 (Reuters) – Aluminum prices fell on Tuesday as bullish speculators continued to put more pressure on them, while other basic metals did not perform well until the end of Sino-US trade negotiations.
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Aluminum has performed poorest on the London Metal Exchange (LME) in the past two months because of concerns about oversupply. After the United States announced that it would lift sanctions on Russia’s aluminium industry, concerns about oversupply rose.
“I’ve been quite pessimistic about the aluminium market for some time, and I expect to see further declines in the coming months,” said Ross Strachan, senior macrocommodity analyst at Kaishou.
Aluminum closed down 0.8% at $1,864.50 a tonne in the final open call, reversing some of the gains recorded last week after hitting a minimum of about $1,785.50 a year.
Steven Winberg, a member of the U.S. trade delegation, said Tuesday that trade negotiations between the United States and China would continue on Wednesday. At present, the two largest economies in the world are seeking to resolve their fierce trade disputes.
This uncertainty leads to a weakening of market activity, Strachan said. “I think people are hesitating before we get any information about trade negotiations or the closure of the U.S. government,” he said. The news has been working behind the scenes.
LME copper fell 0.3% to $5,906 a tonne.
Zinc fell 0.5% to $2,485.
Nickel rose 0.4% to $11,190.
Tin rose 1% to $19,940.
Lead rose 0.8% to $1,969.