SPY397.01+7.38 1.89%
DIA319.13+6.71 2.15%
IXIC11,525.57+170.96 1.51%

METALS-London aluminium poised for worst month in over a decade on growth risks

reuters.com · 04/28/2022 23:15
METALS-London aluminium poised for worst month in over a decade on growth risks

Adds comments, details, updates prices

By Brijesh Patel

- London aluminium prices were set on Friday for their biggest monthly percentage drop in more than a decade, as COVID-19 lockdowns in China and prospects of aggressive U.S. rate hikes fuelled worries over a global economic slowdown.

Copper, used in power and construction and seen as a gauge for the health of the global economy, was headed for its worst month since last June.

Benchmark three-month copper CMCU3 on the London Metal Exchange (LME) was up 0.2% at $9,717 a tonne, as of 0245 GMT, after hitting its lowest since Feb. 1 on Thursday. The contract was down 6.3% for the month.

LME aluminium CMAL3 eased 0.1% to $3,028.50 a tonne and was set for its worst month since December 2008, down 13.2%.

"Investors are cautious amid the rising US dollar and the risk of slowing economic growth. COVID-19 mass testing in Shanghai and Beijing is disrupting economic activity, while liquidity tightening is another headwind for demand," commodity strategists at ANZ said in a note.

"Copper and aluminium erased their supply risk premium after the Russian invasion of Ukraine. This is despite copper mining challenges looming in Peru."

DOLLAR: Making greenback-denominated metals more expensive for buyers using other currencies, the dollar held firm at a 20-year high on Friday and was poised to score its best monthly gain in a decade. FRX/

FED: U.S. Federal Reserve officials have aligned around plans to accelerate the pace of interest rate hikes this year but remain split over what could be the make-or-break decision of where to stop to avoid dragging the economy into recession. nL2N2WQ1VA

GROWTH WORRIES: Data on Thursday showed the U.S. economy unexpectedly contracted in the first quarter amid a resurgence in COVID-19 cases and drop in pandemic relief money from the government. nL2N2WP2ZV

COVID-19: Beijing closed some schools and public spaces on Thursday, as most of the Chinese capital's 22 million residents turned up for more mass COVID-19 testing aimed at averting a Shanghai-like lockdown. nL2N2WQ086

COPPER: Peruvian police on Thursday carried out evictions for a second day at MMG's MMLTF Las Bambas copper mine, seeking to remove a remaining indigenous community that had camped inside company property in a protest. nL2N2WQ2A9

PRICES: LME zinc CMZN3 lost 0.4% to $4,119.50 a tonne, while lead CMPB3 gained 0.4% to $2,264.50 and tin CMSN3 added 0.1% to $40,085.

Shanghai copper SCFcv1 was flat, aluminium SAFcv1 eased 0.2%, zinc SZNcv1 was up 0.1%, nickel SNIcv1 climbed 0.5%, lead SPBcv1 gained 0.8%, while tin SSNcv1 rose 1.2%.

(Reporting by Brijesh Patel in Bengaluru; Editing by Sherry Jacob-Phillips and Vinay Dwivedi)

((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 8067493865; Reuters Messaging: Brijesh.Patel1.thomsonreuters.com@reuters.net))

 For related news and prices, click on the codes in brackets: LME price overview      RING= COMEX copper futures  0#HG: All metals news         MTL   All commodities news      C 
Foreign exchange rates FX=SPEED GUIDES LME/INDEX