LME Aluminum Prices Increase As Inventories Drop.

On Monday, May 15, the LME aluminum futures increased by 1.25% from the previous day to reach US$2,259.5/ton. The decrease in aluminum stockpile was the main cause of the increase.

The capacity was anticipated to decline as Yunnan, China, a major source of aluminum, is about to begin the rainy season. The primary social inventory of aluminum in China was reduced by 50,000 tons to 684,000 tons, and the operational rate of the country's top downstream aluminum processing companies rose to 64.7%.

In addition, SMM's major social inventory of aluminum decreased as well, reaching a new high for the same period over the previous five years at 740,000 tons. The LME's aluminum stock also declined, reaching a three-month low of 373,025 tons. A weakening US currency also increased the allure of metal prices represented in dollars. leading to a hike in aluminum prices.