Aluminium has been an outperformer among non-ferrous metals. Between January and now, its price on the London Metal Exchange (LME) has fallen by 12%, only half of the decline suffered by base metals such as copper, zinc and lead. The market is not showing any tightness.
Also See | Aluminium Leads The Non-ferrous Pack (PDF)
Primary aluminium production is steady and so are inventories—both with producers and LME warehouse stocks. Inventories are up compared with the beginning of the year. Maybe, an improved outlook for key consuming sectors such as aerospace, automobiles and beverages may explain the optimism. Either way, aluminium producers aren’t complaining.