Aluminum prices have updated a four-year high amid fears of lower aluminum production in China due to ongoing supply disruptions from the Middle East.
Aluminum futures for delivery in three months on the London Metal Exchange (LME) are trading at $3,687.5 per ton, which is 1% higher than the closing value of the previous session. During the auction, the price rose to $3,707.5 per ton, which is the highest since March 2022.
Traders fear that the Chinese authorities may oblige aluminum plants to reduce production as part of a nationwide audit of energy consumption and emissions in key industries, Bloomberg writes, citing the analytical company Mysteel Global.
Aluminum companies in the country have increased production amid declining supplies from the Middle East due to the military conflict in the region.
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