Aluminum Rises to 1-Month High
Aluminum futures increased to $2,500 per tonne in May, marking their highest level in over a month. This uptick is attributed to the potential for more stable trade flows between the United States and China, which bolsters the outlook for global manufacturing activity. Both countries have agreed to reduce tariffs against each other for the next three months, thereby supporting demand from Chinese factories. Despite this, the possibility of a significant rebound was restrained as Chinese producers announced plans to expand capacity overseas, anticipating mainland production will likely reach Beijing's output cap of 45 million tons this year. Additionally, major smelters in Southeast Asia reported an increase in alumina supply this year, alleviating the shortages experienced last year and subsequently reducing production costs.
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