Shortage of raw material
Disruptions in supplies of bauxite from Guinea & Brazil. Output suspensions in Australia contributed to a 70% surge in alumina prices this year to a record 5,645 yuan ($779.77) per metric ton on the Shanghai Futures Exchange.
China’s supply cut
China announced to end tax rebates on exports of semi-manufactured aluminum products from 1st December 2024, removing around five million tonnes of supply from the international market
Lower LME Inventories
Aluminium inventories in LME warehouses have dropped 45% since May 2024, now at 619,375 tons, Aluminum is set to leave these warehouses, increasing the supply shortage.
Price Forecast of Aluminum Prices
The global shift toward renewable energy, electric vehicles, and expanding infrastructure is driving long-term growth in aluminum prices. In the short term, aluminum prices are expected to range between 250 to 260 INR/kg