AMU
May 24, 2024
Written by Marziyeh Horeh
The LME 3-month price for aluminum was broadly stable on the morning of May 24 and, at the writing of this article, was last seen trading at $2,627 per metric ton.
The price fell sharply during the week from its recent peak amid hawkish comments from Fed officials, as indicated in the minutes of the latest FOMC meeting. The price eventually stabilized on May 23 and it looks now that support has been found at $2,600/mt.
Kibar Americas said production has started at its aluminum plant in Fairmont, W.Va., where it will manufacture products for the HVAC, packaging, automotive and industrial sectors.
China is bumping up against its official primary production capacity limit of 45.3 million metric tons/year, but production can still increase through “capacity creep.”
Automotive aluminum demand is rising as extrusions, sheet, and castings gain ground across vehicle applications and powertrains.
Recycler demand increased while fewer respondents reported sufficient obsolete scrap, even as inventory drawdowns remained widespread.
On July 9, Aluminum Market Update published “Did aluminum markets price in peace too soon?” The article used data and events through July 8 to test whether falling prices and light financial participation had moved ahead of conditions around the Strait of Hormuz. A month later, LME aluminum positioning offers a useful checkpoint on how that trade played out.