- Profit-taking and weak demand cap aluminium gains
- Tight exchange stocks limit downside pressure
LME aluminium prices remained largely stable during the week, with three-month aluminium prices easing 0.1% w-o-w to $3,244/t from $3,246/t in the previous week.
Prices remained range-bound amid mixed market signals, with subdued demand weighing on sentiment, while tightening exchange inventories provided some underlying support.
Meanwhile, LME aluminium inventories declined 0.6% w-o-w to 246,925 t from 248,300 t a week earlier. The continued drawdown in exchange stocks indicated tightening availability and helped limit the downside in aluminium prices.
What impacted aluminium prices?
LME aluminium prices remained largely stable w-o-w, with three-month prices easing 0.1% to $3,244/t. The market was weighed down by profit-taking and weak downstream demand, while expectations of higher Chinese exports and improving overseas supply capped the upside. China’s aluminium demand has remained weak even as production stays near capacity, allowing higher exports of alloy and semi-finished products to ease supply concerns in the global market.
Meanwhile, LME aluminium inventories declined 0.6% w-o-w to 246,925 t. The continued stock drawdown provided underlying support and limited the downside, although the pace of inventory reduction in China has also started to slow.
Outlook
LME aluminium prices are expected to remain range-bound in the near term, with low inventories and tight physical availability providing support, while subdued demand and expectations of higher supply may limit further gains.
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