The global aluminium market is currently depressed. Prices of the metal at the London Metal Exchange (LME) have fallen by around 40% from their peaks.
The fall in aluminium prices is led by worries about recession in developed economies, weaker Chinese demand, and hawkish monetary policy by global central banks.
However, more recently, there were reports that the US was mulling a ban on Russian aluminium in response to the conflict in Ukraine. This led to a brief rally in global aluminium prices in anticipation that the move would create scarcity for the metal globally.
Russia is the third largest aluminium producer in the world with an annual capacity of 3.9 million tonnes (MT) and around 7% of global production. The global aluminium market is around 70 MT. What will ensure that this rally in
Primary Aluminium Supply (mmt)
prices sustains? Analysts are of the view that the aluminium market is currently steering away from the conventional metric of demand and supply. Many blame the global central bank-led disruption of sucking out liquidity from the financial system for the depression in aluminium prices. THE GREAT FALL
Spot prices at the LME averaged US $2,477/tonne in 2021 and peaked at US $3,878/tonne in March. Aluminium prices averaged US $2,355/tonne during the July-September quarter, falling by 18.6% from average prices in the previous three months.
In fact, aluminium prices hit their lowest in nearly 9 months at US $2,080/tonne during September-end. Now the prices are stabilizing at around US $2,300/tonne.
この記事は Beyond Market の October, 2022 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、8,500 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Beyond Market の October, 2022 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、8,500 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
IMPORTANT JARGON
The phase-wise voting in India for general elections began on 19th April.
YOUNG OR OLD? FIND YOUR IDEAL HEALTH PLAN
Age doesn't define you: find your ideal health coverage at any stage! Choose individual or family plans that fit your needs
BACK IN BUSINESS
Buoyed by post-pandemic travel trends and rising disposable incomes, India's hotel industry is expected to maintain its growth momentum, going forward
SCOOPING UP SUCCESS
Investments are hot, but innovation and competition are the next scoops to conquer for ice cream companies
DIG DEEPER
Investors chasing high-growth should prioritize near-term EPS explosion to justify high PE ratios, but also verify long-term business health and management before taking the plunge
SOARING AMBITIONS
Bolstered by cost advantages and government support, India's Electronics Manufacturing Services industry sets its sights on a $100 billion slice of the global market by 2026
TARGET IN SIGHT
Government policies and private sector involvement have propelled India's defence exports to new heights, putting the seemingly ambitious $5 billion target firmly within reach
PLAYING THE LONG GAME
Small and mid-cap surge in India raises regulatory concerns, but long-term investors with risk strategies may benefit from these volatile stocks given positive economic and interest rate forecasts
MAGNIFIED PRESSURE
While the asset quality of banks is anticipated to remain largely stable, challenges persist in the form of mobilizing deposits and peaking profitability
OPPORTUNITY KNOCKS, BUT CHALLENGES AWAIT
INDIA'S BOOMING PE MARKET ATTRACTS INVESTMENTS IN CONSUMER AND INFRASTRUCTURE, BUT CHALLENGES LOOM. CAN FIRMS PRIORITIZE VALUE CREATION TO NAVIGATE THE RISKS?
