RE: Zox24 Dec 2015 11:34
METALS-Aluminium hits 2-month peak, zinc up on China demand speculation
Wed Dec 23, 2015 5:16pm GMT Print | Single Page [-] Text [+]
* Big Chinese funds expect short-term gains in metals
* Oil price collapse biggest threat to copper downside-GS
* Coming ahead: U.S. Durable goods orders Nov at 1330 GMT (Updates with closing prices)
By Eric Onstad
LONDON, Dec 23 (Reuters) - Aluminium touched its highest in two months and other industrial metals such as zinc also gained on Wednesday on greater optimism about demand in top metals consumer China and as Chinese funds bet on higher prices.
Sources at three large Chinese commodity funds said they have positioned themselves for a short-term uptick in metals prices despite a poor longer-term outlook.
Much of the focus has been on China's Central Economic Work Conference, which decided to maintain a proactive fiscal policy in 2016, Xiao Fu, head of commodity market strategy at Bank of China International in London, said.
"Some of the fiscal expenditures on social development like shanty towns and also infrastructure investment in railways and highways will likely increase next year. That has supported sentiment for base metals along with the production cuts," Xiao Fu said.
Copper, aluminium, nickel and zinc producers in China have announced planned output cuts. Continued...
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