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The base metals, barring tin, reacted positively to the strong US economic releases, with the country’s final services purchasing managers’ index (PMI) for September coming in at 53.5 and exceeding the forecast and previous figure of 52.9.
A reading above 50 indicates expansion, while below 50 contraction.
Likewise, the Institute for Supply Management’s non-manufacturing PMI for last month was also higher than expected at 61.6, compared with 58.5 in August.
“The measure of business activity is at the highest level since January 2004,” ANZ Research noted on Thursday.
Leading the complex higher was aluminium, with the light metal’s three-month price on the LME up by 1.3% to $2,235 per tonne at 2am London time. The price had earlier reached a high of $2,246 per tonne.
Aluminium has found additional support from the announcement that Norsk Hydro has fully suspended operations at its Alunnorte alumina refinery in Brazil, with the expectation of tightening alumina supply a tailwind for aluminium prices.
The news came somewhat as a surprise to the market, with Hydro just recently announcing that it was close to resuming full operations after it signed agreements with local Brazilian authorities last month, ending an environmental dispute that had resulted in production cuts since March.
Elsewhere, the three-month nickel and lead prices both rose by 0.8%.
Fastmarkets MB Research analyst Andy Farida noted that the steady decline in global lead inventory stocks, as well as the persistent market deficits are positive elements that could work in favor of the current rebound.
“Unlike sister-metal zinc, global mine output of lead ores and concentrates are running at a lower rate,” Farida said.
The three-month zinc price increased by 0.4%, while copper climbed 0.6%. Tin has, so far, not yet traded.
All base metal prices up