Aluminium hits 3-1/2 month peak on supply fears
Mining News Pro - Aluminium touched its highest price in more than three months on Thursday

According to Mining News Pro -

 * Aluminium gains could be shortlived -analyst
* Copper hits highest since July 10
* GRAPHIC-2018 asset returns: (Adds technical comments on copper, updates prices) By Eric Onstad LONDON, Oct 4 (Reuters) - Aluminium touched its highest price in more than three months on Thursday, supported by worries over potential shortages after the world`s biggest producer of alumina announced a shutdown. The gains, however, could be overdone because Norsk Hydro`s closure of the Alunorte alumina refinery in Brazil may only be temporary, said Capital Economics analyst Ross Strachan. "I`m wary of reading too much into the prospects on the aluminium side," he said. Hydro said on Wednesday that it would halt production indefinitely and lay off 4,700 people at Alunorte, which has been operating at half of its capacity since March because of an environmental dispute. "It almost makes you wonder if this is an attempt by the company to alleviate the situation by putting pressure on the government," Strachan said. "You would think that there will be a resolution to facilitate at least a significant restart, even if it`s not able to go back to full capacity."

Three-month aluminium on the London Metal Exchange was up 0.2 percent to $2,210 a tonne by 1414 GMT, paring gains after having touched its highest since June 14 at $2,267. Gains were stretching into a fifth session after a 4.2 percent jump on Wednesday for its largest one-day gain since April.
* ZINC: LME zinc dipped briefly after daily LME data showed inventories rose 5,100 tonnes to 203,675 tonnes, but the price recovered to trade up 0.3 percent at $2,659 a tonne.
* COPPER: LME copper rose 0.9 percent to $6,322.50 a tonne, pulling back after hiting a peak of $6,393.50, the highest since July 10.

It got support after major miner BHP said that China`s overseas expansion could boost copper use by 1.6 million tonnes, roughly 7 percent of annual demand.
* COPPER TECHNICALS: Copper`s spike higher was also due to it breaking through technical levels, traders said. "It has carved a base and is confirming a double bottom. It has retested July peak of $6,378 and could head towards the potential near $6,507/6,550," Stéphanie Aymes, head of technical analysis at Societe Generale, said in a note.

* CHINESE MARKETS: China`s markets remain shut for the week-long National Day holiday.
* DOLLAR: The metals market seemed to shrug off a firmer dollar, which held near a six-week high on Thursday as an overnight jump in U.S. Treasury yields prompted investors to add long bets in the greenback against higher-yielding and emerging market currencies. PRICES: Nickel slipped 0.6 percent at $12,695, lead gained 0.3 percent to $2,026.50 and tin edged up 0.1 percent to $19,000

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