GREATER OBSTACLES
Beyond Market|October, 2022
Only a reversal of tighter global monetary policy and the revival of China’s property market will improve the fundamentals of the global aluminium sector
GREATER OBSTACLES

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.

Esta historia es de la edición October, 2022 de Beyond Market.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición October, 2022 de Beyond Market.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE BEYOND MARKETVer todo
PRUDENT PRACTICES
Beyond Market

PRUDENT PRACTICES

Banks worldwide navigate a complex balancing act, steering economies toward growth while safeguarding financial stability through thoughtful management of interest rates and credit risks

time-read
6 minutos  |
August 2024
RETAIN ROULETTE
Beyond Market

RETAIN ROULETTE

Inexperienced investors spin the market wheel, chasing dizzying valuations and risking a bubble burst

time-read
5 minutos  |
August 2024
UNRAVELED THREADS
Beyond Market

UNRAVELED THREADS

Bangladesh's crisis disrupts global textiles, offering India a potential opportunity, but production constraints limit its gains

time-read
4 minutos  |
August 2024
PASSING THE BATON
Beyond Market

PASSING THE BATON

Succession planning helps ensure uninterrupted leadership

time-read
4 minutos  |
August 2024
RISKY BUSINESS?
Beyond Market

RISKY BUSINESS?

SEBI's efforts to protect retail investors from derivatives market risks could inadvertently dampen market volumes

time-read
5 minutos  |
August 2024
INFLATION-PROOF YOUR CHILD'S FUTURE
Beyond Market

INFLATION-PROOF YOUR CHILD'S FUTURE

Inflation might be stealing your child's future, but children's mutual funds can be their superhero

time-read
6 minutos  |
August 2024
EMBRACE UNCERTAINTY, SAYS MARKS
Beyond Market

EMBRACE UNCERTAINTY, SAYS MARKS

Howard Marks urges investors to embrace uncertainty, long-term thinking, and focus on controllables, shunning in his memo “The Folly of Certainty”

time-read
7 minutos  |
August 2024
IMPORTANT JARGON
Beyond Market

IMPORTANT JARGON

70% OF INDIVIDUAL INTRADAY TRADERS IN THE EQUITY CASH SEGMENT MAKE LOSSES, FINDS SEBI STUDY

time-read
4 minutos  |
August 2024
AN ASCENT T'O NEW HEIGHTS
Beyond Market

AN ASCENT T'O NEW HEIGHTS

The IMF predicts India's economy to reach 55 trillion by 2047, driven by various economic indicators showing positive growth and government initiatives

time-read
5 minutos  |
August 2024
CARRY TRADE CRASH: GLOBAL MARKETS REEL
Beyond Market

CARRY TRADE CRASH: GLOBAL MARKETS REEL

Japan’s Policy Shift Sends Shockwaves Through Global Markets, Including India, as Yen Carry Trade Disintegrates

time-read
4 minutos  |
August 2024