The rally mirrors sharp moves on the London Metal Exchange (LME), where aluminium prices stood at USD 3,022.50 per tonne as of January 5, for the first time since 2022. Market reports say the upswing is being fuelled by tight global inventories, driven by a cap on Chinese smelting capacity and production curbs in Europe due to higher electricity prices. Demand from the construction and renewable energy sectors also remain strong, according to reports.
Prices have been on an upward trajectory since October, driven by short-term supply disruptions at an Icelandic smelter affecting close to 100,000 tonnes, as well as growing expectations of global monetary easing.
