Aluminium gains as LME prices cross $2,750 amid tight global supply – 15 October 2025
Aluminium prices rose 1.01% in some regions as LME benchmark moved above USD 2,750/t. Supply tightness, China’s curbs on base metal output, and high speculative interest supported the rally.
👉 Source: Investing.com
Summary :
Aluminium prices rose 1.01% to settle at 264.15, tracking LME prices that climbed above $2,750 per tonne in October — the highest level in over three years — amid tightening supply and strong speculative interest. Prices were supported by China’s decision to curb base metal output growth to just 1.5% annually for 2025–2026, compared with the earlier 5% target, reinforcing Beijing’s aluminium output cap of 45 million tons. The move comes as part of China’s effort to manage overcapacity and control deflationary pressures. Meanwhile, Alcoa announced the closure of its Kwinana alumina refinery in Australia due to deteriorating ore quality, adding to global supply concerns.
On the demand side, rising investment in data centers, which consume large amounts of aluminium, and stronger Chinese manufacturing PMI data boosted sentiment. Speculative positioning on the LME showed the largest net long since mid-2024, while on-warrant stocks dropped 15% in a month to 398,775 tons, highlighting robust physical demand. The World Bureau of Metal Statistics (WBMS) reported a global aluminium deficit of 985,300 tons in the first seven months of 2025, reflecting tight market conditions.
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