FXStreet reports that economists at Capital Economics doubt it will be long before daily aluminium production starts to creep higher again.

“According to the International Aluminium Institute (IAI), global aluminium production grew by 5.0% YoY in March. However, given the virus-related disruption to output last year, we think the monthly change in daily production offers a better steer on the underlying trend. Here, we find that daily production in March both in and outside of China was a little lower than in February.” 

“Given the huge premiums currently being paid for aluminium in the US, Europe, and Japan, we doubt last month’s decline is a sign of things to come. Instead, we think that aluminium production both in and outside of China will push higher over the course of this year, which should cause the price of aluminium to underperform that of other base metals.”