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Aluminum is one of the most abundant metals in the world, often mined from bauxite ore. The main end users of base metals include the following sectors: transportation and construction. Together, these two sectors account for almost half of the market. Guinea, Australia and Vietnam are considered to be the countries with the largest bauxite reserves, while China leads in the proportion of aluminum smelting production.

August saw aluminum futures surpass $2,480 per tonne, reaching a six-week high propelled by heightened fund buying as investors adopt a more optimistic stance. The latest increase is interpreted as a correction towards fair value following the substantial decline in aluminum prices last month. Furthermore, despite robust domestic output, China's aluminum imports unexpectedly increased by 11.5% year over year in July. Alumina is the primary raw material used in the manufacturing of aluminum, and its rising cost is putting pressure on the market as supply has become more scarce due to closures in Australian refineries. Alumina stockpiles have significantly decreased as a result of this scarcity, which has further bolstered the price increase.

In terms of demand, the main aluminum markets include China, the United States, Germany, India and Japan. The aluminum market is assessed to reach USD 112 billion by 2021 and is expected to reach a CAGR of over 6% during the forecast period 2022-2027. The Asia-Pacific region is expected to be the largest aluminum consuming market during the forecast period.