Aluminum hit a succession of all-time price highs this month despite a weak demand.

A commodity broker pointed out:

"When you hear producers in China are shutting production because demand is weak, that's normally bearish, yet the market saw insane price moves."

On July 7, the price climbed to a record peak of US$3,327 per metric ton in the London Metal Exchange (LME), breaking previous high of US$3,260 per metric ton that was recorded about 10 years ago. Then on July 10, it soared to a fresh all-time high at US$3,380 per metric ton.

A London-based trader said the July 7 price move must not have been due to Chinese power / production issues, but the move was due to a market exercise.

*Download podcast: Power shortages drive aluminum price rises