02 DECEMBER 2013www.profi-forex.us
Aluminum futures and Alcoa's stock – Promising investment assets : analysts
Edited by : AL CIRCLE
1 min read
According to an analyst at Alpari, the aluminum industry is one of the most attractive investments at this point. While metallurgy companies still cannot recover form the crisis (which led to aluminum overproduction, price collapse and shutdowns across the globe), China is still a strategical consumer of aluminum.
During the latest crisis, the minimal price was set in Feb 2009 at 1251,75 dollars per metric ton versus 3315 dollars per ton seen on July 15th, 2008. In 223 days the price dropped 62,23%! During the next 3 years the price recovered up to 2800 dollars per ton (+123,6%). In May 2011, the price started another major downtrend, which is still underway.
At this point, the retracement from the previous rally (L1251,75-H2803) is around 70%. On Friday, the London Metal Exchange closed the trading week at 1782.
According to the expert, the aluminum industry is still trying to recover from the overproduction caused by the crisis. After the LME set new rules, the price managed to consolidate above 1755.
During the latest crisis, the minimal price was set in Feb 2009 at 1251,75 dollars per metric ton versus 3315 dollars per ton seen on July 15th, 2008. In 223 days the price dropped 62,23%! During the next 3 years the price recovered up to 2800 dollars per ton (+123,6%). In May 2011, the price started another major downtrend, which is still underway.
At this point, the retracement from the previous rally (L1251,75-H2803) is around 70%. On Friday, the London Metal Exchange closed the trading week at 1782.
According to the expert, the aluminum industry is still trying to recover from the overproduction caused by the crisis. After the LME set new rules, the price managed to consolidate above 1755.
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