HK Stock Market Move | Aluminum stocks continue to rise as two aluminum companies in the Middle East have substantially reduced production, and the increase in natural gas prices has pushed up the production cost of aluminum.

The aluminum industry stocks continue to rise. As of the time of writing, Aluminum Corporation Of China (02600) is up by 5.96% to 11.93 Hong Kong dollars; NANSHAN AL INTL (02610) is up by 3.93% to 55.6 Hong Kong dollars; CHINAHONGQIAO (01378) is up by 3.34% to 35.92 Hong Kong dollars; CHUANGXIN IND (02788) is up by 2.28% to 29.6 Hong Kong dollars. On the news front, two aluminum companies in the Middle East have significantly reduced production. Both Bahrain Aluminum and Emirates Global Aluminum have stated that their production lines are difficult to resume operation in the short term, with a reduction of about 20% in 2026. It is reported that these two aluminum companies have a large capacity, accounting for over 6% of global production capacity combined, with the total capacity in the Middle East accounting for over 9% of global capacity, close to one-fifth of the total global capacity. In addition, the surge in oil and natural gas prices further increases the global aluminum production costs. Goldman Sachs has raised its forecast for London Metal Exchange aluminum prices due to more supply interruptions. The bank has increased its second-quarter 2026 London Metal Exchange aluminum price forecast from $3200 per ton to $3450 per ton; raised the average price forecast for the entire year of 2026 from $3100 per ton to $3200 per ton, with upward risk; and increased the average price forecast for 2027 from $2700 per ton to $2750 per ton.