(Recycling, updating prices, adding values)
HANOI, Dec 29 (Reuters) – Shanghai aluminum prices fell to a near-six-week low on Tuesday, as traders took off from selling more widely in Chinese markets before the end of the year.
The most traded February aluminum contract on the Shanghai Futures Exchange fell as much as 2.9% to 15,295 Yuan ($ 2,342.41) per tonne, the lowest level since November 18.
Three-month aluminum on the London Metal Exchange fell 2% to $ 1,990 per tonne by 0623 GMT.
“Most Chinese markets are down. Aluminum is probably the worst (of base metals). It has been trading in the $ 2,000- $ 2,100 range but is finally giving up, ”said a Singapore-based commodity banker.
The decline comes after a wider sell-off in Chinese shares as investors held profits before the end of the year following the optimistic rally of economic recovery.
ShFE aluminum has gained 21.9% so far this year, the top player in the base metals base on the exchange, followed by zinc at 19.5%.
ShFE zinc fell to a three-week low of 21,020 yuan per ton, down 3.1%, while zinc LME declined 1.9% to $ 2,788.50 per ton.
However, losses across the board were limited as the U.S. House of Representatives approved a plan for $ 2,000 COVID-19 relief studies, up from $ 600 previously.
PROPERTY
* LME copper rose 0.8% to $ 7,849 per tonne and nickel rose 1.1% to $ 17,180 per tonne. ShFE nickel fell 0.3% to 127,330 yuan per ton and lead declined 0.7% to 14,745 yuan per ton.
* Copper should outperform other base metals next year due to widespread applications, and aluminum prices should also win.
* Chinese banks are expected to go against headlines next year due to bad lending issues.
* For top stories in metals and other news, click or ($ 1 = 6.5296 Yuan) (Reported by Mai Nguyen; edited by Uttaresh.V)