In 2016, the aluminium industry performed well and exceeded industry predictions. Even during Q4, the industry’s low season, the price of aluminium has remained strong.
New transportation policies banning overloaded long-haul transport resulted in a low inventory in China’s physical market, as metal has been log-jammed at shipping points. This played a major role in buoying Q4 prices. Finally, the increasing supply of liquid aluminium created an artificial shortage in the aluminium inventory, creating positive market sentiment that raised prices further.
