Aluminum Scrap Markets
October 8, 2024
LME Week topics: China's big move and the changing aluminum market
Written by Gabriella Vagnini
Every year at LME Week, there’s always a moment that makes the metals world sit up and say, “wow.” Whether it’s wild price swings, warehouse dramas, or global events shaking the markets, we know we’re in for something big. This year definitely didn’t disappoint.
China came in with the “wow” factor, going bullish and surprising the metals market. The country’s latest stimulus package, the biggest political shift we’ve seen in years, shows that Xi Jinping is back on the economic growth track. This optimism from Chinese metals traders feels like a blast from the pre-COVID past. But what’s really changed since the Politburo’s rosy outlook in Q2? Well, Chinese stocks are up, iron ore prices are up more than 20%, and now we’ve got this stimulus package making waves. Sure, there are still concerns, like oversupply in copper and aluminum and the early Chinese New Year putting a dent in demand, but overall, there’s a sense that something major is brewing in China, especially in real estate, where homebuyers are coming back.
