Aluminum Reaches a 10-Year High in London as Inventory Dwindles

[Paciente]

Aluminum Reaches a 10-Year High in London as Inventory Dwindles

Nov. 3 (Bloomberg) -- Aluminum rose to its highest in more than 10 years in London as consumers of the metal used in cans and aircraft reduced inventory on analysts' expectations that there will be a shortfall in supply next year.

Stockpiles tracked by the London Metal Exchange, the world's largest metals bourse, today fell to their lowest since May 2001. The 495,500 metric tons left represents less than six days of global demand. Alcoa Inc., the world's biggest aluminum maker, yesterday said it expects aluminum and parts sales for aircraft to rise 9.1 percent to $2.4 billion this year.

``Sentiment toward this metal is likely to take prices further,'' Ingrid Sternby, a London-based analyst at Barclays Capital, one of 11 companies trading on the floor of the LME, said in a report today. ``An acceleration in LME inventory outflows is likely to fuel the upside.''

Aluminum for delivery in three months rose as much as $19, or 1 percent, to $2,019 a ton on the LME, its highest since February 1995. The contract was $10 higher at $2,010 as of 5 p.m. in London. The metal has risen 2.7 percent this year, the third- best performing metal on the LME after copper and zinc.

Boeing Co. and Airbus SAS, the two biggest makers of commercial jets, expect to deliver a combined 660 aircraft this year, from 605 last year. Deliveries may jump to 800 next year, Alcoa Executive Vice President Bill Christopher said yesterday. A Boeing 747 jet contains about 75 tons of aluminum, according to the London-based International Aluminium Institute.

Aluminum market forecasts have been made this week as the metals industry gathers in London for meetings, conferences and the Nov. 1 LME members' dinner.

Production Shortfall

Standard Bank in London, which trades the metal, said in a Nov. 1 report that there will be a 188,000-ton production shortfall next year. Prices will average $1,975 a ton in 2006 compared with $1,855 this year, the bank said.

Natexis Commodity Markets Ltd., which like Barclays trades on the LME's floor, said in an Oct. 31 report that the production deficit next year will be 250,000 tons.

Adam Rowley, a London-based analyst for Macquarie Bank, said at a seminar organized by the LME on Oct. 31 that global aluminum demand will rise 5.7 percent in 2006 to 33.6 million tons.

Producers won't close the gap with demand because of surging power and raw material prices. Rowley said aluminum will need to stay above $1,917 a ton for most smelters in China to remain profitable. The nation, the largest producer of aluminum, is trying to curb output of the metal to improve profitability.

Annual European production capacity totaling 1.2 million tons may close because of rising energy costs, Metal Bulletin Research, the consulting arm of U.K. publisher Metal Bulletin Plc, said in September.

Norsk Hydro ASA, the world's No. 4 aluminum maker, said Oct. 20 it would close the Aluminium-Werk GmbH aluminum smelter in Germany after power costs rose and it failed to fund a buyer.

[Scubawarrior]

  ACERINOX (ibex) !!!  hoje deu sopinha a 10.55/65 a manha toda! 

  vamos ver...depois tb descarregaram em ondres qq coisaita no aluminium

   abraço