HK Stock Market Move | Aluminum stocks rise again. According to reports, Indonesia may plan to implement a new ban on mineral resources. Short-term supply of bauxite remains tight.

The aluminum industry stocks have risen again. As of the time of writing, Aluminum Corporation Of China (02600) rose by 3.84% to 5.41 Hong Kong dollars; CHINAHONGQIAO (01378) rose by 2.79% to 14 Hong Kong dollars. On the news front, since mid-September 2024, the center of gravity of aluminum oxide futures prices has continued to rise. The main 2501 contract reached a high of 5217 yuan/ton on November 6, setting a new high since the contract was listed. Analysts believe that the tight supply and demand situation in the aluminum oxide market is difficult to reverse in the short term, and futures prices still have the conditions to remain strong. However, the release of future market supply capacity brings some bearish expectations, and it is expected that there is limited room for further increase in aluminum oxide futures prices in the future. In addition, it is worth noting that at the recently opened 9th Asia-Pacific Stainless Steel Industry Conference, the Indonesian Nickel Miners Association revealed that Indonesia plans to follow the previous nickel ore export ban and implement a new export ban on 12 mineral resources, including bauxite, to promote downstream industry development domestically. Sealand believes that the supply of bauxite remains tight in the short term, as the shipment of Guinean bauxite has not yet fully recovered, driving continuous price increases for aluminum oxide domestically and abroad, benefiting companies with integrated operations. In the long term, the aluminum industry has limited long-term supply growth while demand continues to grow, and the industry may maintain high prosperity.