On Thursday, May 9, aluminium stocks in London Metal Exchange-registered warehouses surged by 88 per cent to 903,850 tonnes, reaching the highest level since January 2022.
Some sources said last month that inventories are subject to so-called rent share deals. Traders are taking Russia-made aluminium from warehouses and returning it later to profit from rule changes.
Aluminium stocks rose on Thursday as 425,575 tonnes of metal arrived in Port Klang in Malaysia, according to the LME data, which also showed reverse net fresh cancellation of 137,050 tonnes in the same location.
This scale of growth in LME-approved warehouses in just one day is unusual. Some traders are even calling it insane. However, the LME declined a comment request from Reuters.
Amid the inventory surge, the LME aluminium benchmark price increased on May 9 by US$6 per tonne to stand at US$2,494 per tonne.
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