COM - Aluminum price extends retreat as China caps coal price

Alcoa (AA -5.9%) shares plunge as aluminum prices fall sharply, extending a retreat from a 13-year high, as China ramps up measures to ease a power crunch that has slowed economic growth as well as metals supply. Also: ACH -3.4%, CENX -3.3%. Three-month aluminum (LMAHDS03:COM) on the London Metal Exchange -2.7% to $2,755.50, its lowest level in eight weeks. Prices for Chinese thermal coal, which powers much of the country's aluminum smelters, have dropped more than 9% this week, as the government tries to curb rising coal prices. In the latest effort, China's state planner wants coal-producing provinces to probe illegal storage sites and crack down on hoarding. Just two weeks ago, aluminum prices jumped to their highest since 2008.

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Aluminum price extends retreat as China caps coal price