Possible prohibition on Russian aluminum might turn aluminum prices around
Views : 97
Update time : 2022-10-11 17:12:22
LME launched a discussion regarding the possibility and conditions of prohibiting new arrivals of Russian metals. China securities pointed out that the possible sanction is going to reshape the global supply-demand structure of the aluminum industry. If Russian aluminum is banned from LME, the downtrend of aluminum prices might turn around.
At the same time, the aluminum smelters in southwest China continued to deduct production, and will not resume normal capacity until the middle of next year.
According to market participants, the current fall in aluminum prices was mainly due to weak demand for aluminum from the European market. In the meantime, market participants are worried that Rusal’s undelivered long-term stock orders will be delivered to LME warehouses, bringing more pressure onto LME prices.
As a consequence, the continuous falling LME prices have led to the opening of China’s import window for aluminum ingots, which led to a drop in SHFE aluminum prices though China’s domestic aluminum inventories keep reducing.
