Aluminium has been overshadowed by other base metals in recent months, but it is also enjoying a strong rally. Prices in London have surged by 25% this year to a three-year high around $2,100 a tonne; in Shanghai they are close to six-year highs. A stronger global economic backdrop has bolstered demand, while in China, the biggest producer, a clampdown on pollution and excess capacity after years of rampant growth is squeezing supply. Chinese plants are set to produce 30% less this autumn and winter, reckons Beijing. Stockpiles have slipped to their lowest level since 2008.
Viewpoint
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