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Aluminum Stockpiles Jump as Global Demand Slump Leads to Glut

  • Some traders say Russian aluminum deliveries may increase
  • Demand is deteriorating as power crisis hits factories
Updated on

A jump in London Metal Exchange aluminum inventories is adding to mounting evidence of weakening demand for one of the world’s most important industrial metals, while some key buyers are trying to shun Russian supplies.

Warehouse stockpiles tracked by the LME surged by 11% on Tuesday, the biggest increase since February, and rebounding from a three-decade low struck in August. Like several other metals, aluminum has been caught for months in a push-pull between tight physical supplies and worries about a deteriorating economic outlook.