Aluminium Gains As The Market Factored In Seasonally Stronger Demand.
Aluminium prices saw a modest uptick of 0.37% yesterday, settling at 203.95, as the market anticipated seasonally stronger demand. However, gains were tempered by robust supplies from China, the world’s top producer of aluminium. Despite concerns over growing inventory levels in China, analysts suggest that it may be part of a seasonal pattern to prepare for consumption in the second quarter of the year. The surge in aluminium inventory by 85% so far this year in warehouses monitored by the Shanghai Futures Exchange, along with a 2% increase in stocks in LME’s registered warehouses, reflects the ample supply situation. China’s record aluminium production in 2023 has also contributed to limiting the upside for aluminium prices, particularly given its widespread use in auto parts and power cables.
