Aluminum falls as commodities slide due to euro area debt crisis

Bloomberg reported that aluminum fell for a seventh session in London as commodities slid amid concern that the euro area debt crisis might worsen following an inconclusive election in Italy.

The Standard & Poor’s GSCI Spot Index of 24 raw materials fell to the lowest since January 17th 2013. China, the biggest aluminum consumer is set to have a significant surplus of about 700,000 tonnes that is likely to be partly shipped in the form of semi fabricated products.

Mr Walter de Wet an analyst at Standard Bank Plc said that “There is selling across the board as there is so much uncertainty because of Italy. The fundamentals are also very weak.”

Aluminum for delivery in 3 months declined 0.5% to USD 2,027.50 per tonne on the London Metal Exchange. Prices earlier touched USD 2,010 the lowest since November 29.