Aluminum Inches Higher from YTD Low
Aluminum futures in the UK inched higher to $3,050 per tonne after testing year-to-date lows at below $3,000 on November 10th as momentary supply tightness offset the ample production backdrop in China. Tensions between the US and Iran continued to block aluminum from GCC production hubs, driving the prompt spread at the LME to widen to a five-month high of $94 per tonne, as inventories remain half of pre-war levels. Still, increasing production by Chinese smelters investing overseas kept global aluminum prices well below this year’s peaks. The annual cap of 45 million tonnes of primary aluminum in China drove local smelters to establish infrastructure across Southeast Asian and African countries, with ongoing projects set to add over 15 million tonnes of smelting capacity once finished. Indonesia leads the capacity growth, with new smelters set to increase primary aluminum production by up to 70% this year.
Aluminum futures in the UK inched higher to $3,050 per tonne after testing year-to-date lows at below $3,000 on November 10th as momentary supply tightness offset the ample production backdrop in China. Tensions between the US and Iran continued to block aluminum from GCC production hubs, driving the prompt spread at the LME to widen to a five-month high of $94 per tonne, as inventories remain half of pre-war levels. Still, increasing production by Chinese smelters investing overseas kept global aluminum prices well below this year’s peaks.
The annual cap of 45 million tonnes of primary aluminum in China drove local smelters to establish infrastructure across Southeast Asian and African countries, with ongoing projects set to add over 15 million tonnes of smelting capacity once finished. Indonesia leads the capacity growth, with new smelters set to increase primary aluminum production by up to 70% this year.