Aluminium smelters are reeling in profits, with the London Metal Exchange aluminium price and premiums at multi-year highs and raw material prices depressed due to oversupply, sources said.
The LME three-month aluminium price traded at a high of $2,412 per tonne so far on Tuesday, the highest since April 23, 2018, when the price hit a high of $2,531 per tonne.
"The light metal remains well supported on dip-buying activity due to its positive micro dynamics, which include the long queues of metal waiting to be delivered out of LME-registered warehouses and Chinese production cuts due to electricity shortages," Andy Farida, Fastmarkets analyst, said.
"Base metals prices, in particular, copper and aluminium are spearheading the charge higher. With the broader complex still bullish and supported by positive economic data due to a rapid recovery and easing lockdowns, demand for metals such as aluminium should continue in the coming months," Farida said.
Demand for aluminium has been strong in the past few months, with over 500,000 tonnes of aluminium cancelled out of LME warehouses in Port Klang...