What is happening with aluminium?

📌Production was sluggish in 2022; costs pressure increased

📝On our numbers, the global supply of primary aluminium was almost flat YoY in 2022F, affected by persistent capacity closures in Europe (due to the ongoing local energy crisis). In our view, output is unlikely to substantially increase this year either, despite the support from China's anticipated industrial recovery

📊Although some market reports anticipate a >5% YoY rise in FY23F aluminium production, the actual figures have underperformed industry estimates for several years

❗️At spot prices, ~60% of smelters are close to breakeven or are loss-making. Overall, with further demand recovery, the aluminium price would need to rise at least to the marginal level (USD 3,000/t+) to stimulate new supply

#aluminium
https://metals-wire.com/sector/Aluminium