Aluminum prices dip amid China’s rising output and demand concerns
2024.12.17 07:22
prices have dropped below the $2,600 mark per metric ton as market participants react to the dual pressures of increasing production in China and an anticipated seasonal dip in demand during the winter months.
Analysts at ING have noted that the latest official data indicates Chinese aluminum production hit a new high last month.
The figures released this week show that production in China climbed to 3.71 million metric tons. This level of output, if maintained for a year, would result in an annualized production figure of 45.3 million tons.
The London Metal Exchange (LME) three-month aluminum contract has reflected these market dynamics, with a decrease of 1.2% to $2,533.50 per ton.
The decline in price is attributed to the expectation of reduced demand typically associated with the colder season, which often sees a slowdown in construction activities.
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