Why Did Aluminum, Zinc, Lead, and Tin Fall on April 5?



Aluminum weakened on April 5

After raising for four consecutive trading days, aluminum in the LME (London Metal Exchange) slowed down at the beginning of the week. It fell on April 5. Aluminum in the LME fell 0.91% and ended the day at $1,522 per metric ton. According to the International Aluminum Institute, aluminum’s global output growth, apart from China (non-Chinese aluminum production), in the first two months of 2016 was 3.7%. This is higher than the 2.5% growth in non-Chinese aluminum production in 2015. This isn’t a supporting situation for aluminum prices considering the oversupplied market conditions. Since the beginning of 2016, aluminum gained 1%. The price levels of $1,500 and $1,550 per metric ton are the nearest prominent support and resistance levels for aluminum in the LME.

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Nickel continued to gain

Nickel in the LME gained for the second consecutive trading day. On April 5, LME 3M Nickel gained 1.4% and ended the day at $8,480 per metric ton. It was the biggest gainer in base metals on April 5. Nickel tried and failed to close above the important resistance price level of $8,500 per metric ton. In most of the past month, nickel consolidated between the price levels of $8,500 and $9,000 per metric ton. Closing and staying above the $8,500 and $9,000 levels will strengthen nickel.

Zinc, lead, and tin fell on April 5

Zinc in the LME declined for the second consecutive trading day. It closed at $1,812 per metric ton on April 5. The price level of $1,800 is the nearest support for zinc. Similarly, lead in the LME also fell for the second consecutive day to $1,697.50. This was a daily loss of 1.1%. Tin fell 1.8% on April 5 to $16,325 per metric ton. Base metal miners Freeport-McMoRan (FCX), Glencore (GLNCY), Rio Tinto (RIO), and BHP Billiton (BHP) fell 0.85%, 5%, 2.4%, and 1.7%. The Power-Shares DB Base Metals Fund (DBB) fell 0.88% on April 5.

Next, we’ll discuss how the major base metal miners performed.


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