LME aluminum rises on supply concerns
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Update time : 2022-08-30 17:57:23
The LME aluminum futures rose by nearly 2.5% last Friday (August 26), reaching US$2,493.5/ton.
Many large smelters in Europe decided to suspend production due to soaring energy costs. The European benchmark for the next year rose above EUR 1,000 for the first time, and natural gas prices also hit record highs.
Moreover, China, a major aluminum producer, was ordered by the Sichuan provincial authority to temporarily close smelters with an annual production capacity of roughly 1 million tons due to drought and heat waves, which will tighten the aluminum supply in the short term and lead to a hike in the LME aluminum futures.
However, Federal Reserve chairman Jerome Powell said the interest rates will continue rising to curb inflation, which limited the increase of aluminum prices.
