LME Aluminium Price Surges Over 2% as Inventories Continue to Climb

London, July 16, 2025 – The metals market witnessed a volatile session as the price of aluminium on the London Metal Exchange (LME) rose sharply, while alumina and some other alloys moved in the opposite direction. This signals a divergence in market sentiment towards different products within the aluminium value chain.

Detailed Developments on the LME

According to official data on July 16, the LME 3-month aluminium contract experienced a strong increase of $55 per tonne, equivalent to 2.11%, to close the session at $2,670 per tonne. The spot price also recorded a significant rise of $54 per tonne (+2.09%), reaching $2,639 per tonne. This upward momentum indicates investor optimism about the medium-term demand outlook.

In line with the price increase, aluminium inventories in LME-licensed warehouses also grew by 6,550 tonnes, bringing the total stock to 423,525 tonnes.

Alumina and Alloy Prices Adjust

In contrast to primary aluminium, the alumina (Platts) price saw a slight decrease of $1.13 per tonne (-0.31%), falling from $366.22 per tonne to $365.09 per tonne. This decline may be due to the gradual stabilization of the raw material supply for the aluminum smelting process.

Similarly, the price of US aluminium alloy A380 also recorded a decline, with the spot price falling by $25 per tonne to $2,575 per tonne.

Developments on the Shanghai Futures Exchange (SHFE)

In the Asian market, aluminium prices on the Shanghai Futures Exchange (SHFE) also saw notable fluctuations. The most-traded aluminium contract opened at RMB 20,350 per tonne. By the end of the trading session, the price had risen slightly, showing a spillover effect from the LME's upward momentum.

Market Outlook

The divergence between the prices of primary aluminium and alumina suggests that the market is re-evaluating fundamental factors. The rally in LME prices may be driven by expectations of a demand recovery from key consuming industries like automotive and construction, coupled with more favorable macroeconomic factors. However, the adjustment in alumina prices indicates that pressure from production costs may ease in the near future.