As the Chinese economy shifts from manufacturing to consumer consumption, it is slowing down. China accounts for half of global aluminum output so this slower grow inevitably leads to a glut of materials. Societe Generale SA calculates that global supply outstrips demand by 800,00 tons in 2015 and prices have collapsed.
Alcoa announced the closure of their smelter in Brazil. With a headwind this storng it’s not surpirsing tha the stock is down 30%. Their quarterly earnings announcement after the close today will be insightful.