Aluminum Inventories Hit a Record Low and Bears Didn’t Blink
- LME on-warrant stockpiles slump to lowest since at least 1997
- Prices have plunged by a third after hitting a record in March
Bound aluminum ingots.
Photographer: Oliver Bunic/BloombergThis article is for subscribers only.
Aluminum available for withdrawal in London Metal Exchange warehouses plunged to a record low, but the latest sign of supply shortages still isn’t enough to shake the bearish mood dominating metals markets as the demand outlook deteriorates.
On-warrant aluminum inventories dropped 9.7% to 260,275 tons, surpassing a previous low set in 2000, to hit a record in data going back to 1997. Stockpiles have slumped 63% this year, heading for a record annual decline, with robust demand and a slew of smelter curtailments pushing the market into a deepening deficit.