Aluminum prices hit a four-year high on fears of a decline in Chinese production due to ongoing supply disruptions from the Middle East.
Aluminum futures for delivery in three months on the London Metal Exchange (LME) are trading at $3,687.5 per tonne, up 1% from the previous session's close. During the auction, the price rose to $3,707.5 per ton, which is the highest level since March 2022.
Traders fear that Chinese authorities may force aluminum smelters to cut production as part of a nationwide review of energy consumption and emissions in key industries, Bloomberg writes, citing analytical company Mysteel Global.
Aluminum companies in the country have increased production in the face of reduced supplies from the Middle East due to the military conflict in region.
