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<Research>CICC Predicts Aluminum Supply to Start Low & End High in 2026, but Overall Increment Remains Limited
In the current wave of rising non-ferrous metals, aluminum prices significantly underperformed copper prices, CICC published a research report saying. Since the beginning of the ye...
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<Research>CICC Predicts Aluminum Supply to Start Low & End High in 2026, but Overall Increment Remains Limited
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In the current wave of rising non-ferrous metals, aluminum prices significantly underperformed copper prices, CICC published a research report saying.

Since the beginning of the year, the LME copper 3-month contract has risen by 27.2%, while the LME aluminum 3-month contract has increased by only 11.2%, with the copper-aluminum price ratio rising to 4.4.

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CICC believed that there are two main factors behind the trend, naming stronger financial attributes under macro tailwinds, and global inventory imbalance catalyzed by the siphon in the US.

CICC expected aluminum supply to start low and end high in 2026, but the overall increment remains limited. Under the constraint of power bottlenecks, the pace of Indonesia's future electrolytic aluminum projects may be slower than expected.

Therefore, the broker maintained its supply forecast in annual outlook, with a net electrolytic aluminum increment of about 1.1 million tons in 2026, up 1.5% YoY. Entering 2027, the above projects will release output, potentially bringing larger supply pressure.

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