Video Transcript
Alexandra Symeonidi
CFA, Corporate Credit Analyst
Emerging Markets Debt Team
We like aluminium fundamentals as we head into the second half of the year. We’ve seen a good rally in aluminium, but alumina has outperformed. Alumina is a feedstock to aluminium, and higher prices in alumina put the pressure on aluminium producers. Despite lower energy costs in Europe, aluminium smelters that shut down down in 2021 and 2022, affecting about 2% of global supply, are not expected to come back. Aluminium demand remains resilient in China, supported by investments in renewable energy and electric vehicles (EVs), and China is more than half of global aluminium demand. In the ex-China markets, higher aluminium premia suggest that demand might be improving.
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