After previous price falls and continued supply concerns, there was optimism about higher demand in China, which led to a 0.65% uptick in aluminium prices yesterday, to end at 232.45. China’s decision to keep its key lending rates at their current levels reflects the limitations placed on its monetary easing initiatives by declining interest rate margins and a depreciating currency.
The People’s Bank of China maintained its dedication to a supportive monetary policy stance despite this. As to the International Aluminium Institute, the output of primary aluminium worldwide increased by 3.4% in May compared to the previous year, with 6.1 million tonnes produced.
The production of aluminium in China increased significantly from year to year in May, reaching 3.65 million tonnes. This increase was part of a 7.1% increase in production for the first five months of the year over the same period in 2023. Due to increasing shipments from Russia in response to Western sanctions, China’s aluminium imports climbed by 61.1% year over year in May to reach 310,000 metric tonnes.
Following US and UK sanctions in April, Russia dramatically increased its aluminium exports to China; in the first four months of 2024, Russian imports rose by 91.6% yearly. Late last month, the benchmark aluminium contract on the London Metal Exchange reached a level over two years higher, indicating a strong feeling in the market.
