Aluminium gives back all its recent gains

摘要

Following the Glencore-induced rally on Friday October 9, last week saw that $85gain steadily given back, with prices closing the week at $1,570/tonne. This was inline with our expectations. But it was surprising given the response to Glencore’scut in zinc that news of Chinalco closing its 550,000 tpy Liancheng smelter hardlyimpacted the market. The reason is likely to be that China is still seeing a lot ofcapacity coming on stream and much more aggressive cutback action is needed.