Aluminum stocks fell on the London Metal Exchange to their lowest levels since the end of the last century, affected by supply disruptions in the Middle East and consumers’ increasing reliance on available stock to secure their needs.
Stock exchange data showed that total aluminum stocks in its warehouses decreased to 271.3 thousand tons on July 24, which is the lowest level recorded since data recording began in January 1998, and equivalent to less than global consumption within one day.
Duncan Hobbs, research director at Concord Resources, explained that the size of the aluminum market is currently much larger than it was about 25 years ago, which makes the current levels of stocks very low compared to the total size of the global market, according to Reuters.
Hobbs also pointed out that the markets treated supply risks lightly based on expectations of a surplus in 2027 and 2028, ignoring the continued unrest in the Strait of Hormuz.
