Aluminum futures have surged to $2,560 per tonne in late Stember, marking the highest level in over three months. This rise is attributed to robust demand for key industrial metals, spurred by fresh economic stimulus from China. In response to a slowdown in economic momentum, highlighted by disappointing data from August, the People’s Bank of China has implemented a series of monetary measures. This package consists of a cut in the seven-day reverse ro rate, a reduction in the reserve requirement ratio intended to inject nearly CNY 1 trillion of liquidity into the economy, and favorable refinancing options for over CNY 37 trillion in mortgages.
Additionally, concerns over alumina supply in China continue to exert upward pressure on aluminum prices. These supply challenges stem from ongoing bauxite security issues linked to production disruptions in Guinea and Australia, which have persisted since early in the year.
Since the beginning of 2024, aluminum prices have risen by $229 per tonne, equating to a 9.61% increase, according to trading on a contract for difference (CFD) that tracks benchmark market movements. Future forecasts suggest aluminum will trade at $2,485.42 per tonne by the end of this quarter, with expectations to reach $2,604.34 over the next twelve months.