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London aluminum hovers near 6-month low on recession fears


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London aluminum prices hovered on

Tuesday near six-month lows, while prices in China’s commercial

hub of Shanghai fell more than 1% on fears of potential

lockdowns, as prospects of higher interest rates globally

weighed on investor sentiment.

The most-traded July aluminum contract in Shanghai

ended morning trading down 1.7% at 19,875 yuan ($2,951.22) a

tonne, its lowest since May 11.

Three-month aluminum on the London Metal Exchange

was flat at $2,629 a tonne as of 0448 GMT, after hitting its

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lowest since Dec. 15 on Monday.

“Concerns of weaker economic growth as central banks hike

rates weighed on sentiment in the base metals market,” commodity

strategists at ANZ said in a note.

“Following the easing of some restrictions in recent weeks,

the market was reminded of the rollercoaster ride it is on when

authorities in Shanghai sealed a district for mass testing.

These little outbreaks of COVID-19 could hinder the economic

recovery and weigh on demand.”

Beijing is testing millions to stem the spread from a

cluster infection, with China’s vice premier saying COVID-19

prevention and control needs to be strengthened. Shanghai is

only just emerging from a crippling two-month-long lockdown.

Rising expectations that the U.S. Federal Reserve will this

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week raise interest rates by more than previously forecast

unsettled investors.

DOLLAR: Offering some respite, the dollar fell 0.2%

against its rivals, making greenback-denominated metals less

expensive for buyers using other currencies.

* Lead surpluses in top consumer China will cancel out

shortages of the battery material in Europe and the United

States, effectively leaving the global market in balance this

year.

* Ghana is on a roadshow to find a strategic partner to

rebuild state-owned Volta Aluminium Co’s aluminum smelter.

OTHER METALS: LME copper was up 0.3% at $9,318 a

tonne, zinc rose 0.8% to $3,642, lead added 0.5%

to $2,107.50, and tin fell 0.7% to $32,670.

Shanghai copper was down 0.8%, zinc

slipped 0.6%, nickel fell about 5%, lead edged

0.3% lower, and tin dropped 5.1%.

($1 = 6.7345 Chinese yuan renminbi)

(Reporting by Brijesh Patel in Bengaluru; Editing by Sherry

Jacob-Phillips and Shounak Dasgupta)



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