Record high LME stocks overwhelm stimulus’ potential

Aluminum Investing News reports aluminum demand and supply react to the US stimulus plans.

Aluminium LME warehouse inventories leapt by 13,125 tonnes to stand at 3.17 million tonnes, their highest ever. Stocks have risen more than 35 per cent since December. According to Aluminum Association Inc, Aluminum demand in the U.S. and Canada declined 16 per cent in December from a year earlier and 8.1 per cent for all of 2008. Shipments by producers in both countries plus imports equaled 10.3 million tonnes in 2008 and 0.73 million tonnes in December. Output dropped 2.6 per cent in January from December, the report said. Aluminum prices on the London Metal Exchange fell 36 per cent last year and 12 per cent in January.

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