The outlook for aluminum is more positive than the steep drip in price since April may suggest. The world’s largest producers of the metal are confident that 2012 will see robust demand growth, and some have even invested millions in upgrading production capacity. Automotive production will be the main catalyst for growth.
The end of the summer slowdown may be near. The price of aluminum has made some moderate gains since falling from the year high in early May. Forecasts for the growing demand for aluminum are strongest in the aerospace and transportation sectors. Furthermore, China may become a net importer of the metal in the coming years.
Analysts are in agreement at Harbor Intelligence’s Annual Aluminum Outlook Conference predicting stable to higher prices on the year. Also, Coca-Cola accuses Goldman Sachs of manipulating aluminum prices.
After aluminum’s recent slump, many smelters are unprofitable- a reality that may lead to forced shutdowns.
China’s premier Wen Jiabao delivered a big speech on Wednesday urging all levels of government to work with an ‘iron hand’ to improve energy efficiency. Click here to access the entire Editorial
Aluminum is defying logic when it comes to basic economics. Spot aluminum premiums have climbed to their highest price in nearly five years, in the face of mounting warehouse stockpiles.
Why has former owner of Koenig & Vits, Tim Martinez, bought a closed mill for $17 million? Would the mill be rebuilt? Could it be used to pay off debtors? Are aluminum prices positive enough?
Aluminum stockpiles have risen consistently this year amid the downturn in the auto sector; however recent evidence that the economy is improving combined with confidence in Chinese purchases have lifted aluminum demand.
The U.S. and the EU have both launched World Trade Organization complaints against China on the grounds that Beijing unfairly helps domestic makers of steel and aluminum, by blocking overseas exports of raw materials.
Despite the recent recovery in LME aluminum prices; demand for the stainless steel component remains in the dumps. Without any idea of when demand may stage a comeback, aluminum miners are bracing for more tough times.
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