Aluminium prices edged up 0.88% to 201.7 yesterday, boosted by China’s favorable policies driving growth in real estate, automobile, and related consumption.
However, concerns arise as aluminium production in Yunnan is accelerating. And some large smelters are expect to reach full capacity by end of August. Potentially leading to a record domestic operating capacity.
Currently, the resumed production is focused on liquid aluminium, with no significant oversupply pressure for aluminium ingots.
The premium for aluminium shipments to Japanese buyers for July to September remains at $127.5 per metric ton, reflecting slow local demand and ample stocks. Japanese ports reported aluminium stocks at 357,490 metric tons by the end of June, above the recommended range of 250,000-300,000 tons.
Notably, Japan’s imports of aluminium ingots in January-June declined by 32% year-on-year. With imports from Russia plummeting by 59% based on trade data.