Aluminium gains despite record inventories

Most base metals prices were higher Tuesday on gains in US equities markets, which encouraged investors to believe that demand for copper, aluminium and other metals used in industry will rebound.

Three-month aluminium added $45 to $1,333 per tonne in London even though inventories in London Metal Exchange warehouses are up to 3.2 million tonnes, a record as stockpiles have gone up by 36 percent since the beginning of the year.

The gains in aluminium inventories have paced declines in US car sales, which were down 37 percent just in January.

Copper was also higher, adding $95 to $3,326 per tonne in London and 5 cents to $1.50 per pound in New York trade, while zinc was $17 higher to $1,115 per tonne, tin added $145 to $10,550 per tonne, and nickel gained $295 to $9,800 per tonne.

Lead bucked trends and dropped $13 to $1,010 per tonne.

Precious metals prices, on the other hand, fell in New York as demand declined.

April gold was $25.50 lower to $969.50 per troy ounce while March silver fell 46 cents to $14 per troy ounce and April platinum dropped $30.80 to $1,050 per tonne.