Aluminum is one of the most commonly used elements in the world. Here's a look at two of its applications.
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.
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.