Aluminium prices on the London Metal Exchange and Shanghai Futures Exchange have seen steep gains this month on the back of promises from the Chinese government of maintaining a 6.5% growth rate over the next five years and assurances that market forces will be allowed to have a greater say in the shaping of the economy.
Producers in China and elsewhere have been quick to respond to price gains but as we noted earlier this week, the Asian aluminium capacity restarts seem to have jumped the gun on physical demand.
There are some bright spots for domestic Chinese demand but physical premiums in Asia remain subdued.
Metal Bulletin's Linda Lin and Deepali Sharma discuss the developments in this podcast.
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