Aluminum gains momentum

Aluminum futures have been trading at a level close to the 2,500 dollar mark since the latter half of June, but they have risen to over 2,550 dollars per ton in line with the rise in other base metals.

The Fed's interest rate cut observations lowered the dollar, boosted foreign demand for dollar-priced products, and at the same time improved financing conditions for factories in emerging Asian markets.

Further evidence of sluggish domestic demand in China raised expectations for economic stimulus measures ahead of Beijing's 3rd NPC.

Even so, aluminum's backlash was less pronounced than other base metals due to strong supply.

Rainfall in Yunnan Province, which is China's production base, improved the availability of hydroelectric power generation and made it possible for smelters to restore production capacity that had been suspended.

These movements dispelled previous concerns that dry weather would hinder normal producers' operations, and China's aluminum production in May rose 7.2% per year to 3.65 million tons, a record high.