Resilient aluminium prices set to boost Asia’s smelters over global rivals: analysts

[SINGAPORE] Higher aluminium prices could position low-cost smelters in China, India and Indonesia to sustain stronger margins than their global counterparts, industry observers told The Business Times. This is given that cheaper power and relatively competitive raw material sourcing in these Asian countries present these companies an advantage.

That could strengthen Asia’s grip on the supply of aluminium to industries such as construction, electric vehicles and renewable energy, and better enable its low-cost producers to expand and forge long-term customer relationships, they added.

Although the industrial metal’s price has retreated from a four-year high on the expected return of Middle Eastern supply, analysts noted that prices are likely to remain elevated in the near term.