Supply concerns related to China’s strict capacity cap and broader structural demand from sectors such as construction, renewables and transportation continue to support fundamentals even amid short-term pricing fluctuations.
👉 Source: Industry analysis / Structural outlook — https://m.economictimes.com/markets/commodities/news/aluminiums-spectacular-rally-in-india-whats-driving-the-rally-above-320/kg-and-what-lies-ahead/articleshow/126603056.cms?utm_source=chatgpt.com

Summary :

Globally, aluminium’s rally is anchored in supply constraints and energy costs. Europe’s smelters remain scarred by high electricity prices. Additionally, China’s capacity cap curbs – China cannot officially increase smelting capacity beyond 45 Mt, unless they remove or replace existing ones, tightening balances and supporting prices. LME warehouse data and market commentary point to low and rotating inventories and rising physical premiums, reinforcing tightness across consuming hubs.

Article Link :

https://economictimes.indiatimes.com