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Aluminum correction not over yet but uptrend to eventually resume
Edited by : AL CIRCLE
1 min read
Aluminum prices lately have fallen back to the upper end of Harbor Intelligence’s correction target zone of $2,500 to $2,400 a metric ton. “Today’s prices offer value under key industry metrics, but (the) correction phase is not officially over yet,” Harbor says.
Still, Harbor says any slowdown in demand should be short term and that the fundamental picture remains favourable. Harbor looks for an upward trend to start in the June-September period and eventually target $3,000 a ton.
For now, growth in end-user demand is cooling, Harbor says. April data show Chinese output hit a record high and rest-of-world output also rose. However, global aluminium output costs continued to trend higher, such as thermal coal, spot alumina, carbon products and freight.
Harbor says that funds have booked profits, helping push prices down 11% from their peak. “Profit selling is over and speculators are waiting to re-enter the market,” Harbor says.
Still, Harbor says any slowdown in demand should be short term and that the fundamental picture remains favourable. Harbor looks for an upward trend to start in the June-September period and eventually target $3,000 a ton.
For now, growth in end-user demand is cooling, Harbor says. April data show Chinese output hit a record high and rest-of-world output also rose. However, global aluminium output costs continued to trend higher, such as thermal coal, spot alumina, carbon products and freight.
Harbor says that funds have booked profits, helping push prices down 11% from their peak. “Profit selling is over and speculators are waiting to re-enter the market,” Harbor says.
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