Chinese demand is pushing Aluminium prices through the roof

Aluminum prices (LMAHDS03: COM) are hovering near 18-month highs, with the London Metal Exchange three-month future closing at $ 1,863.50 / mt on Friday, its highest closing value since April 2019. Other nonferrous metals also hit new highs on the LME, with tin hitting a 15-month closing high of $ 18,570 / ton and nickel reaching an 11-month intraday high of $ 15,870 / ton. Non-ferrous metals have rallied since China recovered from its coronavirus lockdown, but aluminum lagged behind other metals as a large flood built up in warehouses as smelters slowly cut back production due to falling demand. After hitting its highest level in more than three years in July, stocks held in LME-approved warehouses have since declined 14% as factories soared their orders. There were also signs that demand from global automakers has picked up as European auto sales rose in September for the first time this year.