Tight supply conditions in China are sending aluminum prices through the roof. What gives, what impact will it have on producers and will it sustain?
Aluminium prices hit a 10-year high, reported Reuters, reaching $ 2722 a tonne on August 31. But August was also a month when China’s Caixin PMI, a gauge of manufacturing activity, slipped into a contraction. It had fallen in July as well, but remained above the 50 mark that separates growth from contraction. Can a situation exist where China’s industrial and real estate markets are slowing but aluminium prices are still growing? If it does, it won’t be the only strange…
