Copper and aluminum prices bounced slightly on Wednesday as investors hope better than forecast economic data from top metals consumer China indicate an uptick in demand.
According to Reuters, three-month aluminum (LMAHDS03:COM) on the London Metal Exchange was +0.7% to $2,589/metric ton after dropping 2.2% on Tuesday to its lowest level since November 10, while LME copper (HG1:COM) was +0.4% to $9,264/ton.
China’s economy appeared to show signs of recovery in May as industrial production rose unexpectedly, while car sales jumped 54% in the week of June 6 compared to the same period in May.
“The industrial production beat suggests China has become very agile at keeping the export engines revving despite mobility restrictions,” Stephen Innes, managing partner at SPI Asset Management, told Reuters.
Separately, Alcoa (NYSE:AA) unveiled on Wednesday a $51M project to raise production capacity at its Mosjoen smelter in Norway by 14K metric tons/year to 214K tons by 2026.
Weighed by fears of further lockdowns in China, 40-year high inflation, rising interest rates and a strong dollar, Alcoa (AA) shares have plunged in recent days alongside aluminum prices.
source: Seeking Alpha