Why China adds to aluminium uncertainty
Prices for the lightweight metal are heading for volatile period, says Rio Tinto chief
New York/Toronto — Rio Tinto Group’s aluminium boss says prices for the lightweight metal are heading for an "extremely" volatile period, with uncertainty over when China will curb production helping keep investors on edge. "That’s really where the uncertainty is at the moment," CEO Alfredo Barrios said in an interview. "There’s no doubt that if you look at the supply side, if you look at the environmental issues, sooner or later that will change. But when, is a question mark," he said. China had ordered curbs on steel and aluminium output in as many as 28 northern cities during the winter-heating season as it steps up its fight against pollution, people with knowledge of the matter said in March. Despite those reports, inventories on the Shanghai Futures Exchange continue to rise, touching the highest levels in more than a year. This is due to seasonal factors and production in the country currently rising at double-digit rates to take advantage of strengthening global aluminium pr...
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