Aluminum falls to five-month low as Chinese economic activity shrinks (NYSE:AA)

Aluminum falls to five-month low as Chinese economic activity shrinks (NYSE:AA)

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Aluminum prices slumped to their lowest in nearly five months on Tuesday as funds betting on lower prices due to slowing demand sold, Reuters reports.

London Metal Exchange benchmark aluminum (LMAHDS03:COM) settled -1.5% at $2,715/metric ton after falling to as low as $2,697/ton, the lowest since December 21.

Alcoa (NYSE:AA) shares have plunged 37% since April 20 prior to Tuesday’s trading; other potentially relevant tickers include (CENX), (ARNC), (KALU), (ACH), (JJU)

“The potential for Chinese and global demand to be as weak… points to the need for caution near term,” Citi analyst Max Layton said, according to Reuters, but aluminum supply risks remain elevated, with 1.5M-2M tons of output at risk of closure across Europe and Russia over the next 3-12 months.

China’s economy has suffered due to COVID-related lockdowns in dozens of cities; April factory activity in the country declined at the sharpest pace in 26 months.

Originally Posted on: https://seekingalpha.com/news/3836463-aluminum-falls-to-five-month-low-as-chinese-economic-activity-shrinks?source=feed_tag_commodities
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