The price of aluminium increased by 1.05% to settle at 226.45 as money flooded into commodities, especially metals, a hedge against mounting inflationary pressures. The rise in demand for aluminium aligned with China’s robust production numbers, suggesting a stable growth path for the metal.
March saw a year-over-year increase in aluminium output of 4.19% to 3.555 million metric tonnes in China, the world’s top producer and consumer of metal. The rise in output was attributed to the return to regular production following the Chinese New Year holidays and the shipping of aluminium smelters.
The industry’s perseverance in the face of difficulties is highlighted by the noteworthy 9.6% month-over-month and 1.4% annual growth in the percentage of liquid aluminium output. With an anticipated rise of 250,000 metric tonnes by the end of the month, production capacity is predicted to continue growing in April.
Citing strength in manufacturing, Goldman Sachs (NYSE: GS) increased its prediction for China’s economic growth to 5.0% this year, supporting the outlook for aluminium demand. believes that in 2024, the general government deficit will have increased from 5.8% of GDP in 2023 to 7.1%.
