The London Metal Exchange (LME) copper closed lower on Thursday, but other base metals led by aluminum futures ended higher.
Three-month copper futures reported at $3,530 a tonne, after hitting a low of 3,500, which was affected by a 13% increase in inventories.
Analysts said: "It seems that people are selling copper and buying aluminum, which may be the reason for the strength of aluminum."
When people clear long positions, they will buy on dips as soon as the price is lower. There is a small amount of short positions in the trading activity, but short positions at the end of the session make up the position, driving the price higher.
LME copper stocks soared by 5,800 tons on Thursday to 49,800 tons, the first level since the end of May.
Dealers said that market sentiment has been weakened by the increase in inventories, and copper inventories have almost doubled in two weeks, but they are still roughly equal to the global day's consumption.
A LME trader said: "By the sharp increase in stocks, copper's market sentiment could not be beaten. I think the majority of increased stocks come from consumers who do not need to hold raw materials during the summer."
He added: "They will buy back again in a few weeks, and I'm not surprised by this."
Fundamental factors supporting aluminum Three-month aluminum closed at $1,910, up $22; three-month nickel reported $14,725, up $45.
Barclays Capital stated in its daily report: "The positive fundamentals continue to support aluminum futures, and the ban on processing trade tax revenues is expected to affect China's aluminum exports, which will cause a significant slowdown."
China confirmed on Tuesday that it will call for suspension of alumina and other processing trade tax benefits.
Three-month zinc climbed $20 to 1,302, and three-month lead rose $2 to 857. (End)
Three-month copper futures reported at $3,530 a tonne, after hitting a low of 3,500, which was affected by a 13% increase in inventories.
Analysts said: "It seems that people are selling copper and buying aluminum, which may be the reason for the strength of aluminum."
When people clear long positions, they will buy on dips as soon as the price is lower. There is a small amount of short positions in the trading activity, but short positions at the end of the session make up the position, driving the price higher.
LME copper stocks soared by 5,800 tons on Thursday to 49,800 tons, the first level since the end of May.
Dealers said that market sentiment has been weakened by the increase in inventories, and copper inventories have almost doubled in two weeks, but they are still roughly equal to the global day's consumption.
A LME trader said: "By the sharp increase in stocks, copper's market sentiment could not be beaten. I think the majority of increased stocks come from consumers who do not need to hold raw materials during the summer."
He added: "They will buy back again in a few weeks, and I'm not surprised by this."
Fundamental factors supporting aluminum Three-month aluminum closed at $1,910, up $22; three-month nickel reported $14,725, up $45.
Barclays Capital stated in its daily report: "The positive fundamentals continue to support aluminum futures, and the ban on processing trade tax revenues is expected to affect China's aluminum exports, which will cause a significant slowdown."
China confirmed on Tuesday that it will call for suspension of alumina and other processing trade tax benefits.
Three-month zinc climbed $20 to 1,302, and three-month lead rose $2 to 857. (End)
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