BLBG:Aluminum Near One-Month High as Car Sales Rise While Oil Gains
Aluminum traded near a one-month high as demand prospects for the light metal improve amid advancing car sales and rising fuel costs. Copper also gained.
Aluminum for delivery in three months increased as much as 0.2 percent to $2,147 a metric ton on the London Metal Exchange and traded at $2,145.75 at 11:53 a.m. in Seoul. The price yesterday touched $2,151, the highest intra-day level since Jan. 3. Copper for delivery in three months rose 0.2 percent to $8,245 a ton in London. Markets in China are closed this week for the Lunar New Year holiday.
Norsk Hydro ASA, Europe’s third-largest aluminum producer, forecast this week a balanced market this year with demand set to grow 2 percent to 4 percent outside China. United Co. Rusal, the world’s biggest producer, said last week global demand will climb 6 percent this year. China’s passenger vehicle sales reached a monthly record of 1.73 million units in January.
“The outlook for aluminum demand is improving on rising car sales and higher oil prices,” Lelia Kim, a metals trader at Seoul-based Tong Yang Securities Inc., said by phone today. “Base metals across the board are gaining today as many investors bet Chinese buying will resume after the holiday.”
Crude oil futures rose 0.2 percent to $97.20 a barrel in New York, boosting this year’s advance to 5.9 percent. Higher oil prices push up gasoline costs for drivers, encouraging automakers to use more aluminum to build lighter cars. Kim said gains in crude may also increase production costs for the metal itself, extending price gains.
Global automobile sales exceeded 80 million for the first time in 2012 and will advance 2.4 percent to 82.7 million this year, according to LMC Automotive Ltd., a research company based in Oxford, England.
Copper for delivery in March was little changed at $3.7450 a pound on the Comex in New York. On the LME, zinc and lead advanced, while nickel was little changed. Tin was unchanged.
To contact the reporter on this story: Sungwoo Park in Seoul at spark47@bloomberg.net
To contact the editor responsible for this story: Brett Miller at bmiller30@bloomberg.net
