Aluminum futures rose to above $2,580 per tonne

Aluminum futures rose to above $2,580 per tonne, not far from the near-two-year-high of $2,670 on April 22nd, tracking broad-based gains for main base metals while markets continued to assess the availability for key partitioned markets. On-warrant LME stocks in Malaysian Port Klang continued to soar ahead of the key delivery deadline of May 15th, extending concerns of uncertain supply for major Western clients as the surge in warrants in the key warehouse reflects trading giant’s decision to take advantage of new contract rules following the US and UK’s sanction on Russian aluminum, which limit Russian metal in Europe. Further, bottleneck’s in Russia’s rail system hampered its trade with China, limiting off-exchange supply from the world’s top consumer. Additionally, the Aluminum Corp of China underscored that the country’s bauxite security still remains uncertain due to its dependency on Guinea, which has been subject to disruptions following an explosion in a key fuel depository.