Global aluminium short-term outlook September 2023

Having traded most of the month in narrow US$50/t range, the official LME cash price staged a mini recovery in late September with the price moving above the $2300/t mark for the first time since April. Recent price strength has been largely driven by short covering against low exchange inventories. Although a pledge by the Chinese central bank on 27 September that it would provide further support to strengthen the country’s economy helped lend momentum to the rally. But short covering rallies generally have a limited shelf life.