The bank cautions that the room for further price gains is limited due to rising LME inventories and robust Chinese production. Informist Media

Summary:

The scope for further rise in aluminium prices is limited as inventories at London Metal Exchange warehouses have surged recently and production of the metal in China remains high, Commerzbank said. Inventories at LME warehouses rose by around 100,000 tonnes at the end of last week, mainly in warehouses in Malaysia.

“Although aluminium production in China has been stagnating for several months at close to the government-set upper limit, it should be noted that this is still at a high level,” Commerzbank said. This means concerns about the current shortage of the materials cannot really explain the sustained rise in aluminium prices, it said. 

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