Global Aluminium Output Rises but Market Deficit Persists Amid Middle East Capacity Losses

Despite increasing aluminium production in China, Europe, and Asia excluding China, the global market remains in deficit. This shortage is largely attributed to disruptions in the Middle East, where around 3 million tonnes of capacity have been lost and are unlikely to return soon, according to ING strategists Warren Patterson and Ewa Manthey, as reported by FX Street.

The rise in output across major regions has not fully offset the impact of these Middle Eastern capacity losses. The ongoing deficit suggests supply challenges persist despite broader production gains.

For Japanese investors, this dynamic could influence aluminium prices and related equities, given Japan’s reliance on stable metal imports for its manufacturing sector.