Aluminum Approaches September 2022 Lows

Aluminum futures fell below $2,175 per tonne, approaching the lowest level since September 2022 as evidence of strong supply coincided with increasing concerns of low demand.

Output out of key regions in China, the world’s top producer, is set to rebound as the recovery of hydropower eased power curbs for essential smelters in the Yunnan region.

Market players estimate activity in the region should return to 50% of curtailed capacity by August, supporting a significant inventory buildup as higher supply overlapped with macroeconomic headwinds in China that pressure demand.

Data from May showed that aluminum imports into China grew 1.8% from the corresponding period of the previous year, failing to rebound significantly from pandemic-driven lockdowns in 2022.

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