Aluminium notches new 13-year high as supply fears predominate

Aluminium climbed to a fresh 13-year high as fears over supply curbs outweighed concerns that a deepening energy crisis would hurt growth.

The light-weight metal has surged as the global economic recovery boosts demand, while electricity crises in Asia and Europe threaten to crimp supply. Aluminium reversed early losses after concerns eased that high energy prices could dent economic activity, reducing demand for industrial metals.

“We believe that the concerns about supply still predominate,” Daniel Briesemann, an analyst at Commerzbank AG, wrote in a note. 

Aluminum was one of the first targets in China’s efforts to curb industrial energy usage. Even beyond the current power crisis, Beijing has placed a hard cap on future capacity that promises to end years of over-expansion and raises the prospect of deep global deficits. 

Aluminum rose as high as $3,083 a ton on the London Metal Exchange, the highest since July 2008. By 5:57 pm IST, it was trading up 0.4 per cent.