Analysts note that demand prospects are improving, particularly from downstream industries, while production growth in China remains constrained, helping sustain the rally.
👉 Source: Energy News

Summary:

Britannia Global Markets’ head of metals, Neil Welsh, said that the price of aluminum is around its highs for this year, as tight supply and strong demand are supporting prices. The Chinese market has become tighter. Over the past few months, fund money has flooded into the LME Aluminium contract as investors bet on the end of the chronic oversupply in the market. Production in China is now close to the government’s maximum capacity.

The European Aluminium Premium, the premium that buyers of physical aluminium pay to the LME to cover tax, freight, and handling costs, has risen to $328, up from $183. At the beginning of the month, it reached $330, its highest level since February. Morgan Stanley wrote in a report that the rebound in premium was due to easing of pressure on the European primary metal market from Canadian primary steel and the expectation of costs associated with the EU’s Carbon Border Adjustment Mechanism (CBAM). The note added that if construction activity improves in the first half 2026, and policy measures (CBAM and restrictions on scrap trade) are implemented, this could be the start of a durable margin upcycle.

Article Link :

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