Prices have fallen below the $2,600 per tonne mark as market participants respond to the dual pressures of increasing production in China and an expected seasonal drop in demand during the winter months.
Analysts at ING have noted that the latest official data indicates that Chinese aluminum production hit a new high last month.
Figures released this week show that production in China has risen to 3.71 million tonnes. If this production level were maintained for a year, it would result in annual production of 45.3 million tons.
The London Metal Exchange (LME) quarterly aluminum contract reflects these market dynamics, down 1.2% to $2,533.50 per tonne.
The price drop is attributed to the expectation of reduced demand that usually accompanies the colder season, which often sees a slowdown in construction activities.
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