With total on-warrant aluminium stocks dwindling to their lowest level since July 2007 at 765,025 tonnes, the three-month aluminium price has largely ignored underlying fundamentals since prices spiked to a seven-year high of $2,718 per tonne on April 19.
While prices have returned to levels seen before the sanctions on Rusal were announced on April 6, the aluminium market remains in stasis until a resolution about those sanctions can be achieved. Upward pressure on prices in the physical market
could result from a continued diplomatic impasse between the United States and Russia.
Meanwhile, the uptick in prices comes at the same time as supply disruptions across Alcoa’s alumina and bauxite operations in Western Australia, with Metal Bulletin’s benchmark alumina index pushing higher as a result....