Aluminum prices increased by up to 1.4% amid reports that the European Union may introduce restrictions on imports from Russia. While the scope of these curbs remains undecided, the move aligns with global supply chain reconfigurations since the invasion of Ukraine, which has already reduced Russian aluminum shipments to Europe. Many manufacturers have self-sanctioned, rerouting significant volumes to China, where imports have doubled since 2022.
China, the world’s largest aluminum producer, is expected to see slowed production growth this year due to capacity limits, tightening exports and supporting higher prices. Futures for aluminum closed at $2,595 per ton in London, while other metals like zinc and copper remained steady, and lead dropped 1.1% following increased inventories. Analysts note that the market has largely adjusted to changes, minimizing the potential impact of further trade rerouting.
