Asian LME warehouse aluminum withdrawals surge, aluminum prices continue to rise

In Asia, the aluminum delivery applications at the London Metal Exchange warehouse saw a significant increase for the second consecutive day, driving the aluminum price to maintain its recent upward trend. After rising 1% in the past two trading days, the price of aluminum fluctuated around $2,615 per ton on Tuesday. In just two days, nearly 100,000 tons of aluminum were applied to be withdrawn from the LME warehouse in Malaysia, reducing the amount of inventory available to other buyers from its 14-month high. This year, the LME aluminum market has been volatile, with traders vying to control exchange inventories. In June this year, there were reports that the Mercuria Energy Group had stockpiled over 90% of available inventory and held unusually large positions in the market. This situation prompted the exchange to introduce new regulations, forcing traders holding a large amount of futures positions to lend them out at a capped rate as a supplement to existing inventory holding rules. Despite an increase in inventory in recent months, it remains at historically low levels, and supply concerns persist.