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Aluminium hits 2-week low on weak Chinese information, momentum signals reverse

Aluminium costs fell to a. twoweek low on Monday after data showed factory activity in top. customer China slowed even more in August.

Three-month aluminium on the London Metal Exchange. fell as low as $2,411 per metric ton, its weakest considering that Aug. 19,. and as of 1039 GMT was 1.3% lower at $2,416.5.

China's production data sank to a six-month low last. month, with owners having a hard time for orders, an authorities. producing study showed on Saturday.

The country's real estate sector and car manufacturers are the. greatest users of aluminium.

Despite an enhancement in economic data from the rest of the. world, China's bearish information still carries more weight in. determining metals need, Dan Smith with Amalgamated Metal. Trading stated.

Aluminium had been pressured since late August by holders of. long positions liquidating their trades, the head of metals. research of the brokerage included.

Algorithmic computer designs that position purchase and sell orders. largely on momentum signals had actually turned from buy to sell. aluminium, Smith said.

In other metals, the premium of cash tin costs over the. three-month agreement nearly doubled from Friday to $290 per. metric load. << CMSN0-3 >

This condition, called backwardation, typically points to. tighter supply. Tin was last down 3.4% at $31,230.

The closure of Yunnan Tin's smelter for upkeep. announced last week is expected to draw down tin stock in. China, the expert stated.

Tin stocks at warehouses monitored by the Shanghai Futures. Exchange stood at 10,811 heaps as of last Friday. << SN-STX-SGH >

Among other metals, three-month copper on LME was. down 0.5% at $9,187.5, nickel slid 1% to $16,605, zinc. moved 2% lower to $2,834 and lead increased 0.2% to. 2,056.

(source: Reuters)