Aluminum held near the lowest close in three months weighing whether on major Chinese infrastructure push will be enough to cushion the economy from the impact of virus lockdowns.
President Xi Jinping on Wednesday called for all-out efforts to boost infrastructure spendings.
However, the push might not be enough to lift aluminum. It may hover around the current low levels amid a “mismatch” in Chinese mechanism of demand and supply, Huatai Futures said in a note Wednesday.
The country’s demand for the lightweight metal is yet to return to normal despite the gradual restart of businesses from Covid lockdowns, while domestic supply keeps picking up, it said.
Aluminum was little changed at $3,063 a ton as of 12:06 p.m. in Shanghai, after closing at the lowest level since Feb. 3 on Tuesday. Zinc and copper declined, while lead rose.