Adv
LANGUAGES
English
Hindi
Spanish
French
German
Chinese_Simplified
Chinese_Traditional
Japanese
Russian
Arabic
Portuguese
Bengali
Italian
Dutch
Greek
Korean
Turkish
Vietnamese
Hebrew
Polish
Ukrainian
Indonesian
Thai
Swedish
Romanian
Hungarian
Czech
Finnish
Danish
Filipino
Malay
Swahili
Tamil
Telugu
Gujarati
Marathi
Kannada
Malayalam
Punjabi
Urdu
AL CIRCLE

Aluminium scarcity in Europe will further erode 17-year low LME stocks

EDITED BY : 2MINS READ

Aluminium supplies to Europe to fill the scarcity in the region will further lower the aluminium inventories in LME-approved warehouses over the coming days and weeks from its current 17-year low.

Aluminium scarcity in Europe will further erode 17-year low LME stocks

{alcircleadd}

Citi analyst Max Layton has analysed and noted that aluminium supply will continue to remain weak in Europe as nearly 1.5 million to 2 million tonnes of output are at the risk of closure over the next three to twelve months.

Record high power prices in Europe are continuously lifting the production costs of aluminium, resulting in output curtailments and shutdown. Western Europe accounts for about 10 per cent of global consumption estimated around 70 million tonnes this year.

 Aluminium shortage in Europe has resulted in large draws on LME aluminium stocks, which have already fallen by 72 per cent since March 2021 to 532,000 tonnes, the lowest since November 2005. More worrying is the on-warrant stocks on LME at about 260,075 tonnes, the lowest on record and likely to fall further.

ING analyst Wenyu Yao pointed out, “Aluminium continued its rally from last Friday after on-warrant stocks dropped to a record low, reflecting tightness in the ex-China market.”

Benchmark aluminium price on the LME earlier hit a one-week high of $2,865 a tonne. Worries about the availability of aluminium stocks on LME have also narrowed the discount price over the three-month aluminium contract to $26.5 a tonne from $36 a week ago.

Global Aluminium Industry Outlook 2022

The physical market duty-paid premium that European consumers pay over the benchmark LME is currently trading all-time high at $615 per tonne.

Adv
Adv
Adv
Adv
Adv
Adv
Adv
EDITED BY : 2MINS READ

Responses

Adv
Adv
Adv
Loading...
Adv
Adv
Adv
Loading...
Reports VIEW ALL
Loading...
Loading...
Business Leads VIEW ON AL BIZ
Loading...
Adv
Adv
Would you like to be
featured with us?
Loading...

AL Circle News App
AL Biz App

A proud
ASI member
© 2025 AL Circle. All rights reserved. AL Circle is not responsible for content from external sources.