Search
Close this search box.

NEWS

China stainless steel factory

Expectations of global aluminum market surplus due to increased production and subdued demand.

With the ongoing global economic recovery, the aluminum market is facing unprecedented challenges. The increase in global aluminum production this year is primarily attributed to European smelters resuming production after electricity prices stabilized and Chinese Yunnan province resuming production after the relaxation of hydroelectric restrictions. Despite robust demand in the green sector, weakened consumption in traditional demand areas is limiting the upside potential of aluminum prices, leading to expectations of market surplus.

According to analysts’ projections, the market is expected to experience surpluses of 338,000 tons and 250,000 tons in 2023 and 2024, respectively. This shift from an expected shortage to surplus is having a direct impact on aluminum prices. Natalie Scott-Gray from StoneX in London stated, “Ample supply, especially against the backdrop of idle capacity coming back online in Europe, will limit the upside for aluminum.”

For the outlook on aluminum prices, the average LME spot aluminum price in 2024 is expected to be $2,350 per ton, a 5% increase from current prices. However, the average spot aluminum price for 2023 is projected to be $2,270 per ton, lower than the $2,707 per ton in 2022. These price fluctuations will directly impact the global economy, especially industries and construction sectors that rely heavily on aluminum.

This surplus in supply not only reflects a shift in the supply-demand dynamics of the aluminum market but also underscores the uncertainty in the global economic situation. While demand remains strong in certain sectors, the softness in others and the recovery in the supply side have altered market prospects. This will have a direct impact on metal prices and profound implications for the global economy.

New Center

More Posts

Stronger Dollar and Profit-Taking Pressure

The combined pressure of a stronger dollar and profit-taking caused London copper to end a seven-day winning streak last week, closing down 0.56%. High copper prices are suppressing downstream demand, while market uncertainty surrounding upcoming holidays intensifies, making price trends difficult to predict. Spot copper is likely to decline today. With the strengthening of the

The Golden Age of Mining Giants

Australia’s mining industry is massive, with a long history and a profound impact on global markets. Approximately 1.2 million people are employed in this industry, with annual exports reaching AUD 160 billion. BHP and Rio Tinto are leaders in this field, focusing on the extraction and processing of minerals such as coal, iron ore, and

Aluminum Prices Continue to Rise Amidst a Quiet Trading Atmosphere

Today, LME aluminum prices trended downward, with the 3-month contract quoted at $2,526/ton at 15:01 Beijing time, down by $20/ton from the previous trading day’s settlement price, a decrease of 0.81%. The SHFE aluminum main 2410 contract opened at RMB 19,950/ton, reaching an intraday high of RMB 20,045/ton and a low of RMB 19,895/ton. It

Send Us A Message

CONTACT US

Let's have a chat