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Aluminium to hit $2,400/ton before the end of May; $2,600 before 2012
Edited by : AL CIRCLE
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Aluminum is no longer in a downtrend and they look for further prices gains. LME aluminum hit a four-month high of $2,310 a metric ton in late January, said Harbor Intelligence in a research note.
According to Harbor Intelligence, investment activity was the most significant driver of the price action with funds buying to cover positions in which they previously sold.
However, physical aluminum demand also bounced. The rise in LME canceled warrants, higher regional premiums, an increase in LME cash prices and anecdotal evidence. This financial and physical demand to continue, propelling prices toward $2,400 a metric ton before the end of May and $2,600 a metric ton before year-end. Harbor looks for a 2012 average of $2,496 per ton.
According to Harbor Intelligence, investment activity was the most significant driver of the price action with funds buying to cover positions in which they previously sold.
However, physical aluminum demand also bounced. The rise in LME canceled warrants, higher regional premiums, an increase in LME cash prices and anecdotal evidence. This financial and physical demand to continue, propelling prices toward $2,400 a metric ton before the end of May and $2,600 a metric ton before year-end. Harbor looks for a 2012 average of $2,496 per ton.
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