JP Morgan on Wednesday (March 5) predicted that the global aluminum market would tighten significantly, with a shortage of more than 600,000 tons by 2025, mainly due to a decrease in Chinese supply and US’ new 25% tariffs on aluminum.

The investment banker said in its report that the aluminum price would rise to US$2,850/ton in the fourth quarter of this year to stimulate necessary resumption amid the deficit situations.

JP Morgan foresaw global annual demand growth to reach approximately 2% in 2025 despite facing tariff issues, and it would make the market tighter for the year.