Nickel to aluminum decline on demand concern as IMF cuts outlook
By Bloomberg
Nickel led declines by industrial metals in London and aluminum fell after the International Monetary Fund cut its global growth forecast, sparking concern demand will slow. Copper rose.
The world economy will expand next year at a 3.8 percent pace, below July's 4 percent estimate, the IMF said yesterday. Policy makers in China, the biggest copper consumer, eased real- estate curbs for the first time since the global financial crisis. The metal is use for plumbing and roofing, according to the International Copper Study Group.
"Concerns about the global growth outlook led to some clear risk aversion in markets overnight," ANZ Banking Group Ltd. said in a note dated today. U.S. equities declined yesterday and the Bloomberg Commodity Index headed for its biggest retreat in a week today.
Nickel for delivery in three months dropped 0.9 percent to $16,789 a metric ton by 1:29 p.m. on the London Metal Exchange. Aluminum fell 0.3 percent to $1,949 a ton and copper rose 0.6 percent to $6,712 a ton. Copper for December delivery traded on the Comex in New York was little changed at $3.038 a pound.
Metals trading in China resumed today after a week-long holiday. A gauge of Chinese manufacturing and services from HSBC Holdings Plc and Markit Economics fell to 52.3 in September from 52.8 in the previous month. Readings above 50 signal growth.
The euro area will expand 1.3 percent next year, slower than the prior 1.5 percent estimate, according to the IMF. Industrial production in Germany, the third-biggest copper user, fell 4 percent in August, data showed yesterday.
Copper stockpiles monitored by the LME fell 0.3 percent to 149,625 tons, daily data showed. Orders to remove the metal from warehouses slumped 2 percent to 20,375 tons, the lowest level since June 2012.
The LME won an appeal today over a court ruling that thwarted its plan to ease delivery backlogs at warehouses. The timing of the rule implementation will be announced "shortly," the exchange said in a statement today.
Zinc and lead rose in London. Tin slid.
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