LME Aluminium Slumped to Five-Month Low as Funds Bet Slowing Demand Will Drag Aluminium Prices Lower

Published: May 11, 2022 14:35

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SHANGHAI, May 11 (SMM) - Aluminium prices in London fell to their lowest in nearly five months on Tuesday as funds bet that slowing demand would drag them lower, but concerns about production cuts in Europe due to high electricity costs are expected to provide some support.

At 17:00 London time on May 10 (00:00 Beijing time on May 11), three-month LME aluminium fell 0.05%, or $1.5/mt to close at $2,753.5/mt, after hitting $2,697.5/mt earlier, the lowest since December 21.
China is about to release lending data and social financing data, a key measure of industrial metals consumption, which will provide clues to the demand outlook.

China is the world's largest producer and consumer of aluminium, which is widely used in the power, construction and packaging industries.

Also weighing on industrial metals was a hike in U.S. interest rates, which boosted the dollar. A rising dollar makes dollar-denominated metals more expensive for holders of other currencies, thus hurting demand.

Markets will also keep a close eye on Wednesday's U.S. consumer price index (CPI) for a possible direction of inflation, which will provide clues to the Federal Reserve's policy.

Futures

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