- Write by:
-
Wednesday, September 7, 2022 - 14:49:07
-
377 Visit
-
Print
Mining News Pro - Aluminum prices fell to 17 month lows on Tuesday as a strong dollar and worries over economic growth overshadowed production cuts in Europe.
The dollar was close to 20-year highs, which makes dollar-priced metals costlier for buyers with other currencies and can deter buyers.
Pushing it up are an energy crisis in Europe and strict covid-19 controls in China that have slowed economic activity and hammered the yuan and euro.
Sky-high energy prices in Europe have forced smelters to reduce output — with France’s biggest aluminum smelter the latest to cut — but they also harm other industries, shrinking demand.
Benchmark aluminum on the London Metal Exchange (LME) was down 0.3% at $2,278 a tonne at 1044 GMT.
The metal used in construction, transport, and packaging is down 44% from a high in March and down 19% this year.
Prices are unlikely to recover until the dollar stops rising, said Saxo Bank analyst Ole Hansen.
“Metal consumption should decline, driven by a Europe-led downturn in the months ahead,” analysts at Citi said.
But Citi said supply cuts may still push aluminum up.
Aluminum smelters in Europe have already cut capacity by a million tonnes since energy prices began rising in 2021 and analysts are braced for more.
On Tuesday, a source said France’s Aluminium Dunkerque would cut production by one-fifth and Norsk Hydro said it would keep a small portion of its capacity in Norway offline after maintenance.
However, aluminum stocks in LME-registered warehouses rose by 31,325 tonnes to 308,375 tonnes on Tuesday, easing supply worries.
LME stocks are down from almost 2 million tonnes in March 2021 but outflows halted in recent weeks.
In China, meanwhile, the central bank moved to support the yuan and officials signaled a renewed sense of urgency on the economic stimulus that should support metals demand.
Short Link:
https://www.miningnews.ir/En/News/622126
The US Energy Department on Monday announced $6 billion in federal funding to subsidize 33 industrial projects in 20 ...
Battery metal prices are on the floor, and massive expansions by Chinese miners have been instrumental in driving them ...
Indonesian state-controlled miner Aneka Tambang (Antam) aims to launch the construction of two nickel processing ...
Aluminum prices touched an 11-week high on Monday over concerns over slow recovery in production in China’s Yunnan ...
China’s steel industry is young compared to Europe’s, and its transition to net zero may be slower as it takes a ...
Iron ore futures were mixed on Friday, but set for a weekly gain on mounting anticipation of a pick up in demand in top ...
The Pataz Unified Command, whose members hail from the National Armed Forces and the National Police, detained three men ...
Newmont Corp. has kicked off the sale of its Akyem gold mine in Ghana, which is attracting interest from potential ...
Copper prices soared on Wednesday to their highest in seven months after Chinese smelters, which process half of the ...
No comments have been posted yet ...