Massive Fund Inflows into Aluminium – 18 November 2025
According to Reuters, funds have built record long positions in LME aluminium contracts, as investors increasingly bet that the market is shifting from chronic oversupply toward tighter physical fundamentals. Reuters
This bullish speculative positioning is seen as a strong signal that the market narrative is changing. Reuters
Summary:
the world’s largest producer, now running up against the government’s capacity cap, there is growing concern that the market may be heading towards a structural supply deficit for the first time in decades.
That may seem a strange statement, given a single-day 102,275-ton booster to LME inventory last week but, as is often the case with the aluminium market, LME stock movements can be very deceptive.
The jump in registered stocks at Malaysia’s Port Klang was accompanied by a similar-sized fall in off-warrant inventory held in the same location.
The stocks carousel has been turning a long time at Port Klang as traders and banks scrap for units to lock in lucrative rent deals. But the latest volumes are much diminished by comparison with past stock shuffles.
Crucially, total LME inventory, registered and off-warrant combined, actually fell by 14,225 tons in October with the headline figure hovering just above the 700,000-ton level for the fifth consecutive month.
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