📌Demand started to recover in 2H22; China's reopening might further bolster consumption

📝Generally, demand for aluminium was subdued in 1H22 due to the global economic slowdown, but it started to gradually recover in 2H22. In addition to this, the recent easing of Beijing's anti-Covid policies is likely to boost demand for the metal amid the ramp-up of end-user facilities (e.g. carmakers). Markets are yet to gain momentum from the country's reopening: the Al price has only added some 3% since the first news of the zero-Covid policy cancellation in late-2022

🛒China accounts for ~58% of world primary Al demand, being by far the leading Al consumer

❗️Along with the brightening demand prospects, we note that traceable Al stocks have shrunk by ~85% since 2014, which is now sufficient for only five days of world consumption (vs. the average of 25 in 2010-20 and 10 in 2021). This might amplify the positive effect of demand revival on Al prices

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