Commodities | Aluminum extends gain on Chinese imports as Xi vows more demand

Aluminum and zinc were the best performers among base metals as Chinese leaders pledged to boost demand in its flagging economy. Most mining stocks fell in London trading.
Aluminum climbed 1 percent to USD1,510 a metric ton yesterday in London, extending Tuesday’s advance. Zinc added 1.1 percent, while copper was little changed. Antofagasta Plc, the copper miner controlled by Chile’s richest family, slid 3.4 percent after missing its 2015 output target.
Data Tuesday showed Chinese imports of zinc surging in December to the highest since May 2009, while copper shipments rose to the highest since at least 2008, as buyers snapped up metal in anticipation of further weakness in the yuan. The nation must reduce excessive capacity while expanding aggregate demand, according to a state television report citing President Xi Jinping on the same day.
“After a strong day yesterday, the base metals have largely retained the gains made on stronger Chinese imports,” Vivienne Lloyd, an industrial metals analyst at Macquarie Group Ltd. in London, said by phone. “I wouldn’t be surprised to see the market take a bit of a breather today with lower volumes.”
Aluminum climbed above $1,500 a ton, marking a significant move, Lloyd said. A close at above that level would be the highest this year. Alcoa Inc., which is spinning off aluminum assets later this year, says global demand for the metal will exceed production this year by a record 1.2 million metric tons, forcing car and appliance makers to draw down inventories.
Anglo American Plc led mining shares lower, falling 4.4 percent. BHP Billiton Ltd. lost 3.2 percent.
Antofagasta produced 630,300 metric tons last year, down 11 percent from 2014, as lower grades and community protests curbed output from its mines, according to a statement yesterday. The company’s shares have plunged more than 20 percent this year.
“The continued deterioration of the macro-environment and associated falling commodity prices combined with several operational setbacks resulted in copper production declining,” Chief Executive Officer Diego Hernandez said in the statement. “Whilst we have finished the year on a good note, 2015 has been undeniably difficult.” Bloomberg