EconomyAluminum price falls to its lowest level in 16...

Aluminum price falls to its lowest level in 16 months

Aluminum prices hit their lowest level in 16 months, while other base metals also tumbled on renewed concerns about weak demand after disappointing industrial and real estate data in China, the top metals consumer.

Benchmark aluminum on the London Metal Exchange fell 2.3% to settle at $2,305 a tonne, its lowest since April 2021.

A private-sector survey showed China's factory activity contracted for the first time in three months in August, while around 70 Chinese cities reported falls in new home prices, the most since the start of the COVID-19 pandemic.

"Growth angst is certainly having a profound impact across markets and dampening risk appetite once again," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

Factory activity is weak around the world, according to various surveys. Hansen said next week's expected interest rate hike by the European Central Bank also weighed on markets.

Along with aluminium, tin slumped 6.8% on the London Metal Exchange to hit $21,240 a tonne, its 19-month low, after falling as much as 9 percent.

In other basic metals, copper fell 1.8% to settle at 7,660 dollars per ton; zinc lost 5.9% and remained at 3,255.5 dollars; lead fell 0.9% to $1,933.5; and nickel lost 1.9% to settle at $21,000.

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