Energy Giant Amasses Over 1 Million MT of Aluminum Positions on LME, Sparking Market Jitters

Published: May 16, 2025 18:43

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Recently, news has been circulating widely in the market that an energy giant has established aluminum positions exceeding 1 million mt on the London Metal Exchange (LME). The scale of this position is staggering — as of May 15, LME aluminum inventory stood at only 397,300 mt (with Rusal accounting for approximately 90% of it), and the giant's position is 2.5 times larger than the existing inventory. Affected by this, the near-month contracts of LME aluminum have shifted from a futures contango structure of $28 to a slight spot backwardation structure, intensifying market concerns about the rise in the price of near-month contracts of LME aluminum. Many investors have begun to wonder whether LME aluminum will replicate the previous strong backwardation trend of LME copper, which was triggered by tariff policy risks that led to changes in global trade flows.

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