According to daily LME data released on Friday, the total amount of aluminium stocks in warehouses registered with the London Metal Exchange increased by 88% to 903,850 metric tonnes on Thursday, reaching its highest level since January 2022.
Inventories have been the subject of “rent share deals,” in which traders remove aluminium made in Russia from the warehouses and then return it later to capitalise on changes in regulations, According to sources last month.
According to daily LME data, 425,575 tonnes of aluminium were deposit in Port Klang, Malaysia, on Thursday, increasing global aluminium stocks.
In the same location, the data also revealed 137,050 tonnes of reverse net fresh cancellations.
One of the traders described the growth as “insane” due to its unusual scale in just one day.
The LME did not respond to a request for comment from Reuters right away.
Following the release of the data, benchmark three-month aluminium prices slightly declined before stabilising. The price per tonne of the metal was up 0.2% as of late.