Aluminum for delivery in three months climbed 1 percent to $2,083 a metric ton at 5:50 p.m. on the London Metal Exchange, after touching $2,100, the highest since February 2013. The LME was shut on Monday for a national holiday.
The U.S. economy grew 3.9 percent in the three months through June, according to a Bloomberg survey of economists before government data today. Orders for goods meant to last at least three years climbed by a record 22.6 percent in July, the Commerce Department said yesterday. Consumer confidence unexpectedly rose in August to the highest level in almost seven years, a separate index showed.
Alcoa’s latest closure of one costly smelter in Italy further buoyed up market sentiment following Rio Tinto’s record-high premiums for Oct.-Dec. aluminum shipments to Japanese buyers and a tax hike on bauxite in India.
“The permanent closure of Italian smelter by Alcoa because it is too expensive to operate will drive up both LME and SHFE aluminum prices as this will fuel market speculation over supply”, said one analyst from Shanghai Dalu Futures in an Shanghai Metals Market interview.
“You had a very strong report, and the metals just shot up” after the durable-goods data, Adrian Day, president of Adrian Day Asset Management, said in a telephone interview from Annapolis, Maryland. “The metals are very responsive and sensitive to any kind of economic report right now.”