JJU - Aluminum near 13-year high as LME stockpiles sink to lowest since 2007

Alcoa (NYSE:AA) +3.1% pre-market as aluminum prices rise near October's 13-year high, helped by investor concerns over tight supply and falling inventories. According to Reuters, benchmark aluminum on the London Metal Exchange (LMAHDS03:COM) recently was +1.9% at $3,192.50/metric ton; prices rose as high as $3,229/mt in October, which was the highest since 2008. Aluminum is leading gains in the base metals complex so far this year, up ~13%, partly owing to China, which produces more than half the world's supply and has restricted production to reduce pollution. The threat of sanctions against Russia if it attacks Ukraine also has ratcheted up supply concerns, since Russia is a major aluminum producer. Stockpiles in LME-registered warehouses have sunk to the lowest since 2007 at 767.7K metric tons, down from nearly 2M mt last March. Concern about supply on the LME spiked the cash metal's premium over the three-month contract to $40/mt, its highest

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Aluminum near 13-year high as LME stockpiles sink to lowest since 2007