Aluminum traded near the highest level in more than three years as supply disruptions tightened the market, Report informs referring to Bloomberg.
The metal has surged 32 percent this year, second only to tin among the six base metals traded on the London Metal Exchange, propelled by a global economic recovery that’s expected to fuel purchases of goods ranging from automobiles to toasters.
The metal is also rising on bets that China, the biggest producer, will curb supply to cut emissions, while power rationing in the Asian nation is expected to further squeeze output.
Aluminum rose as much as 0.5 percent to $2,629 a ton on the London Metal Exchange, near the $2,642 it hit on July 30, the highest level since April 2018. It traded at $2,618.50 as of 7:45 a.m. in London. In Shanghai, the metal rose as much as 1.4 percent to 20,705 yuan a ton, the highest since 2008.
Metals are recovering from last week’s slump as concerns ease over the economic fallout from the delta variant and the prospects for additional stimulus in China buoy the demand outlook.