Aluminum futures in the UK fell below $3,140 per tonne, retreating from an over three-year high hit on January 13th after China tightened restrictions on high-frequency trading. Chinese regulators ordered mainland exchanges to remove servers operated by high-frequency traders from their data centres, triggering a drop in metal prices following recent volatility. Still, aluminum prices remained supported by tightening supply and production disruptions. China reaffirmed its efforts to curb overcapacity in metal production to ease deflationary pressures. The country was set to breach its 45 million ton output cap in 2026, forcing smelters to refrain from increasing output. Also, China’s plans to build new smelters in Indonesia continue to face setbacks due to higher energy costs and regulatory challenges. Meanwhile, high energy costs, equipment failure, difficulty in sourcing bauxite, and geopolitical risks suspended operations at key smelters in Iceland, Mozambique, and Australia.
