White-hot metal market cools in warning for global economy – by Archie Hunter and Mark Burton (Bloomberg News – July 6, 2022)


A white-hot corner of the aluminum market that for months defied a broader slide in metal prices is finally slumping, flashing a warning that major industrial economies are stumbling toward a recession.

While commodity-grade aluminum ingots have been tumbling since March on the London Metal Exchange, until recently the premiums paid for specialized products like billets remained sky-high.

Now those premiums for aluminum billets — a cornerstone industrial product used to make extruded parts in buildings, cars and machinery — are slumping from record highs in Europe.

That’s one of the first signs that investor fears about a broad-based industrial slowdown are starting to line up with conditions on the ground in physical metal markets. It’s a sharp turnaround for the billets market, which became a microcosm for Europe’s pandemic supply chain travails.

For the rest of this article: https://www.bnnbloomberg.ca/white-hot-metal-market-cools-in-warning-for-global-economy-1.1788456#:~:text=(Bloomberg)%20%2D%2D%20A%20white%2D,are%20stumbling%20toward%20a%20recession.