BEIJING, Oct 11 (Reuters) - Base metals prices fell sharply
on Thursday, tracking a broad sell-off on equity markets as a
gloomy macro-economic outlook raised concerns over
demand-growth.
Shanghai shares were on track for their worst day
since February 2016, dropping 4.3 percent to their lowest level
since late 2014 after Wall Street suffered its worst drubbing in
eight months on Wednesday.
"Base metals again fell victim to macro concerns amid a
falling equity market. In the near-term, we think that this will
remain the case," ANZ wrote in a note.
The price plunge comes even as inventories continue to drop,
with London Metal Exchange copper stocks falling for 13 straight
days to their lowest since June 2016 MCUSTX-TOTAL.
Malcolm Freeman, director of Kingdom Futures, said in a note
that the sell-off in metals was driven by algorithmic trading
and was "ignoring underlying fundamentals".
"It may well be a case of stand aside until the storm dies
down," he said.
FUNDAMENTALS:
* LME COPPER: Three-month copper on the LME had
fallen 1.7 percent to $6,135.50 a tonne by 0457 GMT, extending a
0.8 percent drop from the previous session.
* SHFE COPPER: The most-traded November copper contract on
the Shanghai Futures Exchange had slipped 1.6 percent
to 49,900 yuan ($7,200.27) a tonne by the mid-session interval.
* OTHER METALS: Shanghai aluminium fell 1.8
percent, while nickel lost 2 percent and zinc,
which hit its highest since June on Wednesday, slipped 1
percent. Shanghai lead and tin were the only
gainers, both nudging up 0.3 percent.
* ALUMINA: Norway's Norsk Hydro is focused on a
return to full output at its Alunorte alumina refinery in Brazil
and is not contemplating layoffs there, CEO Svein Richard
Brandtzaeg told Reuters on Wednesday.
* ALUMINIUM: Rio Tinto is close to
restarting a sale process for some of its aluminium assets,
including a plant in Iceland, which have been valued at around
$350 million, two sources familiar with the matter said.
* GANFENG: China's top lithium producer Ganfeng Lithium
tumbled as much 28 percent on its Hong Kong debut, a
stark warning sign to fellow Shenzhen-listed counterpart Tianqi
Lithium, which is also planning a listing in the city.
