Metals – Aluminium Rallies to a One-Month High
LME aluminium rallied to the highest level in more than a month after inventories in China declined, signalling improved spot demand in the country. China’s total aluminium inventories fell for a third straight session to 440,000 tonnes, the lowest in almost a year, data from Shanghai Metals Market showed. The rally has also been supported by reports that the European Union is considering more import restrictions on Russian aluminium. Although the EU continues to import Russian aluminium, volumes have fallen over the past two years, with European buyers self-sanctioning since the invasion of Ukraine. Russia now accounts for around 6% of European imports of primary aluminium, halving from the 2022 levels. More Russian metal has been shipped to China instead, the world's biggest aluminium consumer. We expect this trend to continue in 2025.