Aluminum Holds Rebound

Aluminum futures in the US were above $2,610 per tonne, holding their sharp rally since April and outperforming most other base metals this year amid persistent threats to supply. The 50% tariff rate on aluminum imports placed by US President Trump drove key Canadian producers to divert metal away from the US. Aluminum shipments to the US accounted for 78% of total Canadian exports in Q2, compared to 95% in Q1. In the meantime, Chinese output is due to be bound by the country's annual limit of 45 million tons this year, capping supply growth from the world's largest producer. Also, Guinea Alumina lost all of its mining licenses after Guinea's military-led government transferred all mining leases to a newly created state-run company, potentially halting ore production that feeds major producer Emirates Global Aluminum. This was shortly after South32 announced it will close its Mozal smelter in Mozambique due to troubles in securing power, terminating Africa's second largest smelter.