Aluminum and Base Metals Markets Experience Volatility Amidst Global Economic Uncertainty

Global aluminum inventories declined in November to 2.928 million metric tons, a 33,000-ton decrease from the previous month, as reported by the International Aluminum Institute. Meanwhile, base metals on the London Metal Exchange were mixed, influenced by a weaker U.S. dollar and concerns over slowing global economic growth. Copper futures, however, traded higher on the Shanghai Futures Exchange, driven by a surge in spot gold prices and rising tensions in the Middle East. Swiss commodities trader Glencore International AG seeks to recoup approximately A$16 million from collapsed Australian copper miner Matrix Metals, while the Russian government has decided to support the abolition of export duties on unalloyed nickel and copper cathodes.

Key Takeaways:

• Global aluminum inventories decreased by 33,000 metric tons in November to 2.928 million metric tons, according to the International Aluminum Institute.
• Base metals on the London Metal Exchange were mixed, with support from a weaker U.S. dollar but potential for further selling due to global economic concerns.
• Copper futures on the Shanghai Futures Exchange settled higher due to spot gold's surge in Asia and a technical rebound, despite concerns over Mideast tensions.
• Russian government decision to abolish 5% unalloyed nickel export duty and 10% copper cathodes export duty may impact global metal markets.
• Swiss commodities trader Glencore International AG aims to recoup A$16 million from collapsed Australian copper miner Matrix Metals.

Statistics:

• Global aluminum inventories decreased by 33,000 metric tons in November.
• Aluminum inventories stood at 2.928 million metric tons in November.
• Base metals on the London Metal Exchange were mixed, with copper futures trading in a narrow range.
• Copper futures on the Shanghai Futures Exchange traded higher, influenced by a surge in spot gold prices.

* Russian government abolished 5% unalloyed nickel export duty.

• Russian government abolished 10% copper cathodes export duty.

Sources:

• "Aluminum Inventories Fall in November" - Dow Jones Commodities News via Comtex (Dec 29, 2008)
• "Glencore Seeks to Recoup A$16 Million from Collapsed Australian Miner" - Dow Jones (Dec 29, 2008)
• "Russian Government Supports Abolition of Metal Export Duties" - Dow Jones (Dec 29, 2008)
• "Copper Futures Trade Higher on Shanghai Futures Exchange" - Dow Jones (Dec 29, 2008)