Aluminium Prices Pressured by Rate‑Hike Outlook and China Destocking
Aluminium futures slipped 0.79% on the SHFE and 0.18% on the LME as expectations of U.S. rate hikes weigh on demand. China’s continued destocking of ingot inventory and a historically low LME inventory level have added supply‑side pressure, while rising oil and shipping costs keep geopolitical risk premiums elevated. The market remains in a consolidating phase with a core trading range of RMB 23,700‑24,500/tonne (LME USD 3,200‑3,300).
Aluminium futures slipped 0.79% on the SHFE and 0.18% on the LME as expectations of U.S. rate hikes weigh on demand. China’s continued destocking of ingot inventory and a historically low LME inventory level have added supply‑side pressure, while rising oil and shipping costs keep geopolitical risk premiums elevated. The market remains in a consolidating phase with a core trading range of RMB 23,700‑24,500/tonne (LME USD 3,200‑3,300).
In the short to medium term, aluminium prices are likely to stay under pressure, with traders watching inventory levels for signs of further depletion. Supply‑risk premiums may support prices if geopolitical tensions or shipping disruptions intensify, but the current consolidation suggests limited upside until downstream demand picks up.