ShreeMetalPrices: Alcoa Inc. Shocking Loss Will Worsen the Global Economy.


In response to hawkish central banks’ efforts to combat inflation, metal prices have fallen.
Alcoa Inc., a US economic hegemon and the world’s largest producer of aluminium, unexpectedly posted a quarterly loss, adding to concerns about the global economy as the price of the metal.

That is use in everywhere from smartphones to Automobiles, is struggling.
As aggressive central banks battle inflation, Europe is dealing with an energy crisis. And China’s economy is struggling to revive, metal prices have fallen.

According to Goldman Sachs Group Inc., metal prices are expect to continue falling through the beginning of 2023. Commodities already are pricing a 5% or more impact on industrial demand in key economies.

Alcoa reported an estimated loss of $60 million in what it called a “difficult quarter” with notably lower prices and increased expenses for raw materials and energy. Alcoa is normally among first of the global metals heavyweights to report earnings.

Global Economy Concerns.

Aluminum prices have dropped by about 50% from their March highs. Since reaching a high in March, when Russia’s invasion on Ukraine triggered concerns about supply, aluminium has decreased by about 50%.

Since then, metal prices have been hampered by China’s ongoing real estate crisis and international monetary tightening. The rise in the dollar has also been important in driving up the price of metals for buyers using other currencies.

One-third of the world economy could contract next year. According to the International Monetary Fund. Which recently revised its forecast for global growth downward. On Wednesday, the World Steel Association changed its prior prediction of a slight uptick in the alloy’s demand this year to one of a decline.

In New York’s after-market trade on Wednesday, Alcoa lost more than 6% of its value. And in opening trade on Thursday. Aluminium stock shares in Asia following the US producer lower.

Acro adverse headwinds will keep the metals sector under pressure through the fourth quarter and the beginning of 2023, according to a note from Goldman. In three months, aluminium is expected to cost $2,100 a tonne, down from $2,220 as of 16:00 p.m. in India.