Gains in aluminum stocks widened. As of the time of writing, Aluminum Corporation of China (02600.HK) rose 4.63% to HK$10.85; China Hongqiao Group (01378.HK) gained 2.41% to HK$31.48; and Innovative Industrial Holdings (02788.HK) increased by 1.85% to HK$20.94.
Zhitong Finance APP reports that aluminum stocks have extended their gains. As of the time of writing, Aluminum Corporation of China (02600.HK) rose 4.63% to HK$10.85; China Hongqiao Group (01378.HK) gained 2.41% to HK$31.48; and Innovative Industrial Holdings (02788.HK) climbed 1.85% to HK$20.94.
On the news front, supply chains in the Middle East have been disrupted, prompting a realignment of the global aluminum industry landscape. According to data from China’s General Administration of Customs, China’s aluminum exports surged 15% year-over-year to 598,000 metric tons in April. Cumulative exports for the year have reached 2.05 million metric tons, up 8.9% year-on-year. Some analysts have already projected that China’s aluminum exports could rise further in May and June as overseas customers continue purchasing Chinese semi-finished products.
Citi forecasts that aluminum inventories will drop to historic lows within the next 6 to 12 months. Despite sluggish demand, the aluminum market is still expected to experience a supply shortage of nearly 2.7 million tons this year. If the decline in demand is insufficient to offset the tight supply, aluminum prices could reach $4,000 per ton within the next three months. In an optimistic scenario, the average price of aluminum in 2027 is projected to reach $5,350 per ton.
