Falling LME aluminium stocks saw a cash-to-three-month discount, which helped aluminium gains

With a tighter cash-to-three-month discount of $1.23 per ton, a notable change from last Friday’s discount of $45.94 aluminum prices spiked by 1.04% yesterday, closing at 237.3. The decrease in LME aluminium stockpiles, which fell to 513,850 tons the lowest level since December 2023 due to recent withdrawals from Taiwan, Malaysia, and South Korea, was the primary cause of this narrowing discount.

Due to increased demand and rising metal prices, which enhanced industry profitability, China’s primary aluminium output climbed by 7.4% year over year in March to reach 3.59 million metric tonnes. In addition, China’s imports of unwrought aluminium and its products increased by 89.8% in March to 380,000 metric tonnes.

By the first quarter of this year, imports had risen to 1.1 million tonnes, an increase of 92.3% over the previous year. This data indicates strong demand and possibly tighter global supply dynamics, including primary metal and unwrought, alloyed aluminium.

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