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Aluminum outperformance driven by higher oil
Edited by : AL CIRCLE
1 min read
Despite high inventory levels at the London Metal Exchange, aluminum has managed to outperform other base metals so far in 2011 as spot prices have climbed roughly 13%.
Perhaps the most important driver of aluminum’s relative strength is higher oil prices, according to Kenrick Jordan, senior economist at BMO Capital Markets.
“Given its high energy-intensity, rising oil prices pressure aluminum production costs,” he said in a research note.
Perhaps the most important driver of aluminum’s relative strength is higher oil prices, according to Kenrick Jordan, senior economist at BMO Capital Markets.
“Given its high energy-intensity, rising oil prices pressure aluminum production costs,” he said in a research note.
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