Aluminum Prices Drop

Aluminum prices have fallen below the $2,600 mark per metric ton as market participants respond to increased production in China and an expected seasonal dip in demand during winter.

Production Increase

Analysts at ING reported that official data showed Chinese aluminum production reached a new high last month, climbing to 3.71 million metric tons. If this level of output continues, it would lead to an annualized production figure of 45.3 million tons.

Market Dynamics

The London Metal Exchange (LME) three-month aluminum contract has mirrored these market conditions, decreasing by 1.2% to $2,533.50 per ton. This price decrease is largely due to anticipated reduced demand linked to the colder months, which usually sees a slowdown in construction.

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