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Aluminum hits highest price in five months; demand improving
Edited by : AL CIRCLE
1 min read
Aluminum hit its highest price on the London Metal Exchange in more than five months, profiting from a recovery and growing demand in key consumer countries, said Commerzbank in a research note.
“The Japan Aluminum Association, for instance, believes that demand in the country has already seen its lowest point and is now likely to climb again following eight months of continuous decline,” Commerzbank added.
“This view is backed up by the fact that Japanese consumers will once again be paying higher premiums for aluminum from April, for the first time in three quarters. The premium on the LME price reflects the regional supply/demand situation and covers freight and insurance costs. The country is recovering from the natural disasters it suffered last year--this is confirmed by the growth in industrial production in January,” Commerzbank continued.
Japan is the largest Asian importer and the world’s fourth-largest consumer of aluminum.
The bank also cites a report from the North American Aluminum Association Tuesday of a 6% increase in U.S. and Canadian demand in 2011.
As of 7:20 a.m. EST, three-months aluminum was up $20 to $2,345 a metric ton and peaked at $2,356, its strongest level since Sep. 19.
“The Japan Aluminum Association, for instance, believes that demand in the country has already seen its lowest point and is now likely to climb again following eight months of continuous decline,” Commerzbank added.
“This view is backed up by the fact that Japanese consumers will once again be paying higher premiums for aluminum from April, for the first time in three quarters. The premium on the LME price reflects the regional supply/demand situation and covers freight and insurance costs. The country is recovering from the natural disasters it suffered last year--this is confirmed by the growth in industrial production in January,” Commerzbank continued.
Japan is the largest Asian importer and the world’s fourth-largest consumer of aluminum.
The bank also cites a report from the North American Aluminum Association Tuesday of a 6% increase in U.S. and Canadian demand in 2011.
As of 7:20 a.m. EST, three-months aluminum was up $20 to $2,345 a metric ton and peaked at $2,356, its strongest level since Sep. 19.
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