HK Stock Market Move | Stock price of Aluminum Corporation Of China (02600) fell more than 5% during trading hours as market anticipates gradual recovery of aluminum supply in the Middle East. LME aluminum price dropped to a new low since February.

Aluminum Corporation Of China (02600) fell by more than 5% during trading, closing at a decrease of 4.48% to HKD 7.68 at the time of writing, with a turnover of HKD 226 million. On the news front, LME three-month aluminum prices fell to a recent low of $3,110 per ton, the lowest since February 25th, as the market expects aluminum supply from the Middle East to gradually recover. A commodity strategist from The Netherlands International Group stated that the decline in aluminum prices reflects a rapid decline in geopolitical risk premiums, with the market pricing in the reopening of the Strait of Hormuz and the gradual resumption of Gulf exports. Huatai stated that concerns about overseas aluminum expansion in 2027-2028 have been escalating recently, with focus on capacity expansions in Indonesia, India, Angola, and Saudi Arabia. However, considering constraints on domestic production capacity, uncertainties in overseas project power support, and supply-demand balance calculations, we believe that the current market's pricing of the long-term supply-demand situation for aluminum is overly pessimistic. Overseas supply and demand are expected to remain in a tight balance, with the potential for a significant shortage if global power shortages worsen and new AI-related demands increase.