Base Metals Hammered by Weak Chinese Credit Activity
Copper’s new multiyear low
On November 12, all base metals fell due to weak Chinese credit data, with the LME 3M Copper falling by 2.4%. It closed the day at $4,823.5 per metric ton. This is a new six-and-a-half-year low created in copper.
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On November 12, the LME 3M Aluminum fell by 1.7% and ended the day at $1,492 per metric ton. Since the beginning of the week, aluminum prices have been consolidating. The LME Aluminum closed at a new low in this month.
Other base metals
On November 12, LME Nickel fell by 2.6% and closed the day at $9,410 per metric ton. This is the lowest price level that LME Nickel closed at since December 2008. After recovering yesterday, nickel resumed its downtrend that had started on October 29 as shown in the graph. LME Zinc also fell on November 12 because of weak Chinese credit activity data. LME 3M Zinc fell by 0.5% and ended the day at $1615 per metric ton. This is the lowest price level for LME Zinc since 2009.
The LME Lead remained almost unchanged on November 12 by falling 0.18%. It closed the day at $1,617 per metric ton, its lowest price level since 2009. LME Tin fell by 1.4% on November 12 and ended the day at $14,620 per metric ton. Tin has been consolidating since the beginning of November.
The base metal mining companies like Freeport-McMoRan (FCX), Glencore (GLEN), Alcoa (AA), and Rio Tinto (RIO) ended the day in losses on November 12. The major base metal ETF SPDR S&P Metals & Mining ETF (XME) fell by 3% on November 12.