Aluminum Piles Up in China as Iran War Shrinks Global Supply
“Chinese fabricators have slowed purchases to just meet hand-to-mouth demand,” said Huang Yuyao, an analyst with research firm Mysteel Global. The lackluster performance of a widely used industrial material could be a warning sign for China’s broader economy, which rebounded in the first two months of the year but now faces the fallout from higher energy costs and other disruptions due to the conflict in the Middle East. Although operating rates at the fabricators that shape aluminum have risen since the lunar holiday, overall demand still lags the previous year due to elevated prices, Howard Lau, China materials analyst at HSBC Holdings Plc, said in a note.
“Chinese fabricators have slowed purchases to just meet hand-to-mouth demand,” said Huang Yuyao, an analyst with research firm Mysteel Global. The lackluster performance of a widely used industrial material could be a warning sign for China’s broader economy, which rebounded in the first two months of the year but now faces the fallout from higher energy costs and other disruptions due to the conflict in the Middle East. Although operating rates at the fabricators that shape aluminum have risen since the lunar holiday, overall demand still lags the previous year due to elevated prices, Howard Lau, China materials analyst at HSBC Holdings Plc, said in a note.