FXStreet reports that Daniel Ghali, Commodity Strategist at TD Securities notes that decarbonization may kill aluminium supply.

“Our gauge of supply risk is showing nascent signs of waning, and provincial sales of strategic reserves could dent this premium.” 

“Reports of emissions cuts have boosted sentiment, but Inner Mongolia's capacity is contained in cities that have not contributed to overconsumption.” 

“Positioning has surged, with top SHFE accounts growing length across metals. This ties into reflation, inflation-hedging, and the supercycle narrative but does not reflect facts on the ground.” 

“Chinese deleveraging could see tailwinds morph into headwinds, ultimately catalyzing a reversal in length.”