Aluminum Prices Rocket: Gas Shortages, China's Drought, and Sanctions Sizzle Supply

Aluminum future reached a two-year high due to strong demand and supply issues. Major mining company Rio Tinto had to halt alumina shipments from its Australian refineries because of gas shortages, causing concerns about supply. The worst drought in six decades in China’s Yunnan region threatened the availability of hydroelectric power for aluminum producers, adding to these concerns. Meanwhile, stocks of aluminum available for immediate delivery in Malaysia dropped significantly after May 15th due to trading companies leveraging new contract rules following US and UK sanctions on Russian aluminum. This could make it harder for clients who can only buy specific non-Russian contracts.