keywords :
Aluminium prices bounced on Thursday, breaking four sessions of losses, as available inventories slid and investors hoped that China would ease its strict COVID restrictions.
Three month aluminium had gained 2.6% to $2,226 a tonne by 1015 GMT after sliding 8% over the past four sessions.
The most-traded aluminium contract on the Shanghai Futures Exchange SAFcv1 climbed 1% to 18,460 yuan a tonne.
“We might see some bounces in metals prices, mostly on rates-related re-positioning and short-covering, but there’s nothing sustainably bullish in this market – it’s still overwhelmingly bearish out there,” said Tom Price, head of commodities Strategy at Liberum.
“We’ve noticed that whenever there’s any suggestion of a positive shift in markets, lots of cash piles back in. Fact is, investors worldwide are still ready to re-engage on any green shoots of optimism.”
China is considering a cut in the duration of quarantine for inbound visitors from 10 to seven days, Bloomberg News reported, citing people familiar with the matter.
“(It is) sentiment-driven. If they cut quarantine, at least it brings us closer to a reopen, which will have a powerful impact since China consumes a lot,” said Marex analyst Zenon Ho.
China has been imposing strict movements and quarantine regulations to curb the spread of the coronavirus, which has dampened economic growth and demand for metals.
Available inventories of aluminium in LME registered warehouses slid 18%, data showed on Thursday, after owners of over 100,000 tonnes of metal gave notice they want to withdraw their material.
Capping price gains, however, was other data that showed overall supply was still healthy, with global primary aluminium supply rising 4.3% year-on-year in September to 5.7 million tonnes.
Among other metals, LME copper rose 1.2% to $7,477.50 a tonne, zinc added 0.2% to $2,905.50, but nickel shed 0.4% to $21,850, lead dropped 1.6% to $1,953.50 and tin dipped 0.3% to $19,290.