As the world’s largest producer of aluminium, and with slower-than-anticipated ingot inventory build and stronger prices, China’s aluminium market is currently looking “tight” report Macquarie analysts. Lynn Zhao and colleagues in their March 29 piece titled: “Ali strength in China unlikely to last” don’t envisage strength in alumina prices to last much longer.
Aluminium inventory in China hasn’t risen much
Last December, China’s aluminium smelters pledged to put a hold on starting new mills and keep idled capacity closed after prices slumped to the lowest in six years. The country now accounts for over half of the world’s aluminium production and its debt-laden smelters’ ability to continue producing is the main factor in when the global supply glut will tighten.
Zhao and...
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