Aluminum Hovers Near 3-Year Highs

2026-01-05 13:42 By Andre Joaquim 1 min. read

Aluminum futures in the UK eased to around $3,090 per tonne but remained close to an over three-year high, amid mounting signs of tighter supply for manufacturers.

China, the world's top aluminum producer, reiterated its priority of preventing overcapacity in metal production to curb deflationary pressures for manufacturers.

The country was set to breach its 45 million ton output cap this year, forcing smelters to refrain from growing output in 2026.

The developments drove firms to sell their capped supply locally instead of exporting to foreign consumers, driving exports to sink 9.2% annually in November.

Meanwhile, moves by Chinese smelters to build new plants in Indonesia continued to face troubles amid higher energy costs and local regulations risks.

Meanwhile, high energy costs, equipment failure, difficulty in sourcing bauxite, and geopolitical risks suspended key smelters in other countries including Iceland, Mozambique, and Australia.



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