In a recent trading session, LME aluminum prices experienced a noteworthy surge, closing at $2,181 per metric ton—a gain of $35.5 per metric ton or a 1.65% increase.

The Federal Reserve’s response to last year’s peak inflation of 9.1% involved a series of 11 rate hikes throughout 2023.

Investor Confidence Boosted by Beijing’s Economic Support as Fed Addresses Inflation Risks

This development led to a discount on immediate aluminum delivery compared to the three-month contract on LME, indicating subdued demand and increasing supply.

Predictions suggest that domestic aluminum ingot inventory will dip below 500,000 metric tons, accompanied by increased products from Yunnan’s production resumption.