Mineral drops despite China showing the yuan support

Aluminum is close to the lowest levels in 3 months and raw iron ore losses, even after China showed support for its currency in light of the length of the dollar. The Chinese central bank determined the reference exchange rate for the yuan at a stronger level than 7.2 yuan for the dollar, after the Chinese currency was revealed at 7.3 for the dollar during Friday’s trading without an important level. Yuan weakness usually harms the demand for industrial mineral as it increases the price of buyers in China. Minerals were put under pressure in the last quarter of last year, as the dollar boosted thanks to Donald Trump’s overwhelming victory in the presidential election, while various attempts of China were fueled to revive growth -uncertainty about the prospects of demand. “Trump’s commercial policy plans have led to renewed expectations that the dollar’s strength continues for a longer period … and it may pay prices for lower levels,” according to a research note from the Fiti Solutions BMI. Aluminum price fell 0.2% to $ 2488 a tonne at 12:46 p.m. Shanghai time, and zinc fell 0.2%. The future Iron -Ru contracts fell 1.2% to $ 97.05 per tonne in Singapore, which scored the lowest level since November.