Aluminum Rises to 1-Month High

Aluminum futures in the US were over $2,640 per tonne in September, the highest in over one month and outperforming other base metals this year amid threats to supply. The 50% tariff rate on aluminum imports placed by US President Trump drove key Canadian producers to divert metal away from the US. Aluminum shipments to the US accounted for 78% of total Canadian exports in Q2, compared to 95% in Q1. Chinese output is due to slow on the country’s annual limit of 45 million tons, capping supply growth from the world’s largest producer. Also, 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. In the meantime, speculative bullish positions and quick demand for physical aluminum drove primary aluminum stocks in the LME to plunge by nearly 100,000 tonnes to 375,000 in the first third of the month.