Aluminum Prices Surge as Supply Shock Fears Grip the Market
Traders cited possible Chinese output cuts and Middle East disruptions as supply tightness deepened, while Shanghai alumina futures rose 5% on Guinea supply worries.
- Aluminum prices hit their highest point in more than four years on Tuesday, as fears of output cuts in top producer China compounded continuing supply disruptions from the Middle East.
- The Middle East conflict has triggered the largest aluminum supply shock in at least 50 years, accelerating inventory drawdowns of around 3 million tonnes this year and keeping LME cash contract premiums at $71 a tonne.
- While China's daily aluminum output reached a record 129,000 tons last month, the nation now faces energy-use and emissions inspections, and Guinea prepares to limit exports of bauxite, a key raw material.
- JPMorgan analysts warned that the industry is descending into a "metaphorical point of no return," predicting the global aluminum market will face a "serious and prolonged supply outage" even if chokepoint disruptions resolve.
- Guinea Mines and Geology Minister Bouna Sylla plans to introduce export quotas in June, stating, "We want to regulate the quantity to raise prices back to reasonable levels.
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Aluminum Prices Surge as Supply Shock Fears Grip the Market
Aluminum prices in London are up nearly 17% since the onset of the U.S.-Iran conflict, as a growing chorus of top commodity desks, including Mercuria, Goldman, JPMorgan, and others, warn that the market is facing a major supply shock. That disruption, driven firstly by Middle East smelter outages and the Hormuz maritime chokepoint, is now colliding with new concerns that China may be forced to curtail output amid energy-use and emissions inspect…
Aluminum Skyrockets to Four-Year High as Globalist Supply Crunch Exposes the Rot of Centralized Control
Aluminum on the London Metal Exchange settled at $3,672.50 a metric ton on May 26 – the highest since March 7, 2022 – according to Bloomberg data reported by Mining.com [1]. The industrial metal rose 0.6% as fears of output cuts in top producer China compounded continuing disruptions in the Middle East, traders and analysts said [2]. […]
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Aluminum jumps to four-year high as fears of China production cut adds to Middle East disruption
Aluminum futures on the London Metal Exchange jumped to a four-year high as fears of output cuts in top global producer China added to continuing disruptions in the Middle East.
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