Aluminium stocks jump as traders eye shift from shortage to glut

Warehouse stockpiles tracked by the LME jumped by 11% on Tuesday, the biggest increase since February, and rebounding from a three-decade low struck in August

A jump in London Metal Exchange aluminium inventories is adding to mounting evidence of weakening demand for one of the world’s most important industrial metals, while some key buyers are trying to shun Russian supplies.

Warehouse stockpiles tracked by the LME jumped by 11 per cent on Tuesday, the biggest increase since February, and rebounding from a three-decade low struck in August. Like several other metals, aluminium has been caught for months in a push-pull between tight physical supplies and worries about a deteriorating economic outlook.

There are growing signs that consumption is suffering, which could lead to even bigger inflows onto the LME