Aluminium Prices Slid During Profit Booking as Supply Concerns Caused Prices to Rise

Aluminium prices saw a minor decrease of -0.59%, ending at 235.4, due to investors booking profits after previous advances spurred by supply fears due to sanctions on Russian metals. The actions taken by Washington and London to limit exchanges’ acceptance of aluminium produced in Russia had an additional effect on market dynamics.

According to LME statistics, investor notices to remove metal from warehouses have continued, bringing the quantity of accessible LME aluminium stockpiles down to 171,200 tonnes the lowest since August 2022.

China, the greatest producer and importer of aluminium in the world, saw a notable increase in the amount of unwrought aluminium and products it imported in March, rising by 89.8% to 1.1 million tonnes in the first quarter. This increase was driven by strong demand despite higher pricing.

Additionally, rising demand in several industries, including the automotive, construction, and packaging sectors, caused China’s primary aluminium output to climb by 7.4% in March to reach 3.59 million metric tonnes. The demand for aluminium was further supported by signs of revival in China’s manufacturing sector, which expanded for the first time in six months.

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