October 8, 2018 / 1:20 AM / 2 months ago

METALS-London aluminium prices sink amid expectations huge Brazil refinery could restart

MELBOURNE, Oct 8 (Reuters) - London aluminium prices fell more than 2 percent on Monday after a Brazilian court approved emergency waste measures that could allow the world’s biggest alumina refinery to resume production.

FUNDAMENTALS

* ALUMINIUM: London Metal Exchange aluminium fell for a third session, dropping 2.2 percent to its weakest in four sessions at $2,083.50 a tonne. Prices on Thursday reached $2,267 a tonne, the highest since June.

* ALUNORTE: Norsk Hydro has been granted a permit in Brazil to use new technology to extend the life of a disposal area for its troubled Alunorte alumina refinery, the world’s largest, which should lead to the restart of 50 percent of production, the firm said on Saturday.

* ALUMINA: Higher alumina prices have helped to lift aluminium prices. Alumina prices surged to $620 from $459 the week before on expectations Alunorte would be wound down until some time next year, cutting market supply.

* CHINA: China’s central bank on Sunday announced a steep cut in the level of cash that banks must hold as reserves, stepping up moves to lower financing costs and spur growth amid concerns over the economic drag from an escalating trade dispute with the United States.

* LME copper prices drifted up 0.3 percent to $6,194 a tonne.

* The Shanghai Futures Exchange reopened after a week-long holiday. SHFE zinc rallied by 3 percent.

* Trade is expected to be lighter and more volatile this week with much of the metals and mining industry in London for the sector’s biggest week of meetings, LME week.

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MARKETS NEWS

* World stock markets sank for a second straight day on Friday after strong U.S. jobs numbers signalled a continued tightening of the labour market and increased inflation pressures, while Treasury yields rose again to multi-year highs.

DATA AHEAD (GMT)

0145 China Caixin services PMI Sep

0600 Germany Industrial output Aug

0830 Euro zone Sentix index Oct

1400 U.S. Employment trends Sep

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

Reporting by Melanie Burton Editing by Joseph Radford

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