According to the forecast from Goldman Sachs, the supply of aluminum was under pressure because the capacity hit a cap, and China’s Yunnan winter made production cut. Therefore, onshore primary production was expected to only increase by 2% next year.

In addition, China recently started to implement stimulated policies to support the property sector, further increasing aluminum prices. Besides, the US dollar might be weak because the Fed was expected to implement a looser monetary policy, which further strengthened aluminum prices.

The global shortage of primary metal was expected to be 1.23 million tons next year, and the price might increase to US$2,600 a ton in 12 months.