According to reports, the London Metal Exchange spot price on Wednesday had a premium of 147 US dollars/ton over three-month futures, the highest in more than 30 years; LME warehouse inventory fell to its lowest level since 1990, and the spot rise structure reached its worst level since the late 1980s. According to exchange data, as of Monday, long positions in warehouse receipts and spot contracts held by the two trading entities were equivalent to 60% to 80% of the inventory available in the LME storage network, further exacerbating the problem of concentrated supply. Meanwhile, the Tom/Next price spread, which reflects delayed delivery costs, once rose to $31.73 per ton, the highest since 2021, indicating increased pressure on the market to compete for existing inventory. The Middle East conflict has disrupted aluminum exports in the Gulf region, rising transportation costs and risks, and some smelters are still repairing damaged facilities. At the same time, trade barriers limit supply in the European and American markets. Although additional production capacity is being released in Indonesia, its aluminum products are not yet eligible for LME delivery, making it difficult to ease inventory shortages in the short term. LME said it will prevent the market from being overcontrolled through large account position management rules. The futures price curve shows that supply pressure has extended to 2028.

According to reports, the London Metal Exchange spot price on Wednesday had a premium of 147 US dollars/ton over three-month futures, the highest in more than 30 years; LME warehouse inventory fell to its lowest level since 1990, and the spot rise structure reached its worst level since the late 1980s. According to exchange data, as of Monday, long positions in warehouse receipts and spot contracts held by the two trading entities were equivalent to 60% to 80% of the inventory available in the LME storage network, further exacerbating the problem of concentrated supply. Meanwhile, the Tom/Next price spread, which reflects delayed delivery costs, once rose to $31.73 per ton, the highest since 2021, indicating increased pressure on the market to compete for existing inventory. The Middle East conflict has disrupted aluminum exports in the Gulf region, rising transportation costs and risks, and some smelters are still repairing damaged facilities. At the same time, trade barriers limit supply in the European and American markets. Although additional production capacity is being released in Indonesia, its aluminum products are not yet eligible for LME delivery, making it difficult to ease inventory shortages in the short term. LME said it will prevent the market from being overcontrolled through large account position management rules. The futures price curve shows that supply pressure has extended to 2028.