Aluminum Prices Rise Due to Supply Constraints, Energy Costs, and Demand Gap; Inventory to Decline Soon

On April 20, Zhang Ruizhong, General Manager of Aluminum Corporation of China, stated at the 2025 annual results briefing that aluminum prices had risen since the beginning of this year, primarily driven by factors such as rigid global supply constraints, energy cost support, and a widening supply-demand gap outside China. He noted that the current high inventory was temporary, and as downstream sectors fully entered the peak season in Q2, inventory would gradually enter a destocking phase.

Most Japanese enterprises typically maintained only about two months of inventory for parts or raw materials, meaning that many enterprises may begin to experience supply disruptions by the end of this month or early May.