China’s bid to rein in exports roils aluminum stocks and prices
China’s cancellation of tax relief on exports has left the aluminum industry scrambling to assess the impact on supply flows.
The economic malaise that had markets pushing deep into the red over the last two weeks hit a bright spot on Tuesday.
Copper futures rose the most in over a week, Bloomberg reported, on news of an uptick in the Chinese manufacturing sector:
A Chinese manufacturing index released by HSBC Holdings Plc and Markit Economics showed a preliminary reading for August of 49.8, compared with the final 49.3 for July. Imports of refined copper by China, the world’s largest user, rose for a second month in July, customs data showed yesterday. Inbound shipments of scrap copper jumped 14 percent from a year earlier.
According to Bloomberg, copper futures for December delivery climbed 3.95 cents, or 1 percent, to close at $4.0145 a pound on the Comex in New York, the biggest gain for a most-active contract since Aug. 11.
Copper traders are anxiously awaiting Ben Bernanke’s speech from Jackson Hole, Wyoming this weekend, when the Federal Reserve chairman is expected to address the sagging economy in the United States, the world’s second biggest copper consumer. Last year at the same meeting, the Fed introduced its second round of quantitative easing, or QE2, a 600-billion-dollar bond purchase program.
