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.
Bloomberg reports that aluminum producer United Co Rusal (HKG:0486) is in talks to develop mines in Guinea.
In an interview with CNBC, the deputy chief executive of Rusal expressed that Aluminum will average $2,700 per ton for the year.
Bloomberg reports Alumina will be traded mostly in the cash market within three years not long- term contracts, adding to price gains for the material.
Bloomberg.com reports that OAO Sberbank intends to commence placing Russian depositary receipts for shares in United Co. Rusal on Dec. 23.
Bloomberg.com reports that Asia's demand for aluminum will drive prices up in Q4, according to United Co. Rusal.
Reuters.com reports that Rusal has missed forecasts in its' latest reporting.
Bloomberg.com reports that Rusal, driven by higher aluminum prices, shot up to record highs in Hong Kong.
On Tuesday, Russia's United Company RUSAL (HKG:0486), the world's top aluminium producer, reported that it returned to the black in the second quarter, thanks to higher output and better prices of the lightweight metal.
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.
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