The aluminum market has been highly dynamic recently, with significant price fluctuations, changing supply chains, and evolving trade patterns. As inventories in China rise, prices have dropped from a two-month high. At the same time, key players are adjusting their strategies to navigate shifting global demand and geopolitical challenges.
In the recent few days, Aluminum prices decreased sharply due to rising Chinese inventories.
Rusal saw a 41.6% rise in net profit for H1 2024, driven by increased production and record exports to China despite geopolitical tensions.
Emirates Global Aluminum is investing in strategic initiatives, such as low-carbon aluminum production and recycling capabilities.
Rising inventories in China have contributed to a decrease in aluminum prices after hitting a two-month high. Meanwhile, in Japan, premiums for aluminum shipments are set to increase by 8% to $185 per metric ton for October-December deliveries. This increase follows a 16%-19% rise in premiums to $172 per ton in the July-September quarter, reflecting a tightening supply in Asia as more aluminum is diverted to higher-paying markets in Europe and North America.
Russian aluminum giant Rusal reported a 41.6% increase in first-half net profit, driven by higher production and record shipments to China, despite facing geopolitical challenges. Western consumers remain cautious about Russian aluminum due to the ongoing conflict in Ukraine and resulting sanctions. However, Rusal’s production surged to 1.96 million metric tons of primary aluminum and about 3 million tons of alumina in the first half of 2024, indicating resilience in navigating market constraints.
Emirates Global Aluminum has also shown strong performance, with an adjusted EBITDA of $1.14B in the first half of 2024, higher than the same period in 2023. EGA’s strategic initiatives, such as expanding low-carbon aluminum production and developing recycling capabilities, position it well for further growth.
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