Aluminum Holds Rebound

Aluminum futures were at $2,610 per tonne, holding most of their rally since April amid support from a softer dollar and the outlook of lower supply. Guinea Alumina lost all of its mining licenses after Guinea’s military-led government transferred all mining leases to a newly created state-run company, potentially halting ore production that feeds major producer Emirates Global Aluminum. This was shortly after South32 aluminum smelter announced it will close its Mozal plant in Mozambique due to troubles in securing power, terminating Africa’s second largest smelter. Also in the backdrop, Chinese output is due to be bound by the country’s annual cap of 45 million tons this year, capping supply growth from the world’s largest producer. In the meantime, the broader RatingDog manufacturing PMI in China unexpectedly reflected an expansion in the world’s largest manufacturing sector.