Demand, margin worries weigh on aluminium producers as crises continue

Metal's price has declined by a third in two months on LME; analysts differ on how supply-demand situation may pan out

The global aluminium supply and demand situation may have altered for the worse. Prices have dropped 35 per cent in the last two months on the LME. Some of the concerns are due to demand reduction in China during the lockdowns, while global demand elsewhere has also been hit by high inflation.

Margins are likely to be affected by high fuel and power costs. Demand in China is expected to fall by 8-9 per cent through the June quarter. Overall, global demand is still likely to be marginally higher than supply and maybe a little more if there are supply