FX.co ★ Aluminum Rises Toward Over 2-Month High

Aluminum futures have risen to approximately $2,550 per tonne in June, marking the highest point since the beginning of the second quarter. This increase is driven by concerns over raw material supply and speculation that manufacturing demand might remain strong in key industrial regions. In China, retail sales surpassed expectations, indicating that recent economic uncertainties have not significantly dampened consumer demand. This development has tempered pessimistic views on China's economic performance. On the supply side, global bauxite supplies are uncertain due to ongoing disputes between the Guinean government and Emirates Global Aluminum regarding mining operations, potentially impacting licensing from one of the world's largest raw material suppliers. Despite the risk of market squeezes linked to substantial positions held by Mercuria, the increase in open tonnage at LME inventories has helped moderate further price rises.