Fitch: Tight supply in the aluminum market benefits low-cost smelters in the Asia-Pacific region

(1) The global primary aluminum supply is tight, and the turbulent situation in the Middle East has reduced the supply of metals in the maritime market, with limited alternative sources. Since the outbreak of the conflict at the end of February, aluminum prices have risen by approximately 20%. According to Fitch, Asia-Pacific smelting enterprises that can maintain production and control costs are expected to achieve considerable profit and cash flow growth. (2) Asia-Pacific producers have greater advantages over their global peers, as their cost base is less affected by fluctuations in imported natural gas and spot raw materials.