22 OCTOBER 2015www.bloomberg.com/news
Aluminum's losing streak extends to sixth day on glut concerns
Edited by : AL CIRCLE
1 min read
Aluminum fell for a sixth day, the longest slump in three months, on concern that a glut will worsen amid weakening demand in China, the world’s biggest metals consumer.
The Asian nation is boosting aluminum production at the same time that economic growth is expected to be the slowest in decades, adding to the outlook for a global surplus. Dwight Anderson, the founder of hedge fund Ospraie Management, said he saw little reason for short-term optimism on industrial metals.
“Aluminum is miserable and is going to stay miserable and will have to force closures and bankruptcies,” said Anderson said.
Chinese shares retreated from a two-month high as weak trade data from Japan underscored sliding global demand. BNP Paribas SA expects global output of aluminum to exceed demand by 1 million metric tons this year.
Aluminum for delivery in three months fell 1.9 percent to settle at $1,515 a ton on the London Metal Exchange. Prices haven’t dropped for six straight days since July 23. The commodity retreated as much as 2.2 percent to the lowest since August 24.
The Asian nation is boosting aluminum production at the same time that economic growth is expected to be the slowest in decades, adding to the outlook for a global surplus. Dwight Anderson, the founder of hedge fund Ospraie Management, said he saw little reason for short-term optimism on industrial metals.
“Aluminum is miserable and is going to stay miserable and will have to force closures and bankruptcies,” said Anderson said.
Chinese shares retreated from a two-month high as weak trade data from Japan underscored sliding global demand. BNP Paribas SA expects global output of aluminum to exceed demand by 1 million metric tons this year.
Aluminum for delivery in three months fell 1.9 percent to settle at $1,515 a ton on the London Metal Exchange. Prices haven’t dropped for six straight days since July 23. The commodity retreated as much as 2.2 percent to the lowest since August 24.
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