Alcoa CEO Sees No Certainty a Definitive Recovery Is Coming – by Joe Deaux (Bloomberg News – May 14, 2020)

(Bloomberg) — Alcoa Corp. Chief Executive Officer Roy Harvey isn’t ready to declare that the world is on the road to recovery yet.

Speaking at a virtual metals and mining conference, the head of the aluminum producer said there remains too much uncertainty in global economies to feel comfortable saying the situation is improving from the coronavirus crisis. Aluminum gluts are now growing outside China, which Harvey said is already oversupplied, and this will further weigh on prices.

“I don’t think we’ve yet got the clarity, nor do we have the orders on the books, to signal that there is a definitive recovery coming,” he said.

“I don’t think that represents the fact that nobody plans to restart, I think that represents the fact that there is not yet certainty that that restart is going to happen.”

Harvey’s comments come as countries move toward relaxing lockdowns and investors try to gauge how long it will take economies to recover. Stan Druckenmiller said this week that the economic effects of the coronavirus are likely to be long-lasting, calling the notion of a V-shaped recovery — the idea the economy will quickly snap back as the pandemic eases — a “fantasy.”

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