Aluminum Gains In Week Commerzbank

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Aluminum Gains In Week Commerzbank

Aluminum Gains 7.5% In A Week

According to a commodity analyst from Commerzbank, aluminum prices increased by 7.5% in the week compared with last week.

The real reason behind the upside in Aluminum prices is attributed to the upcoming rate cuts in the USA. Although Aluminum prices have dropped today, the overall trend is still bullish.

Concerns About Aluminum Supply Side

Commerzbank highlighted how there are concerns about the supply side of Aluminum based on the Alumina's future prices.

The future prices of Alumina have declined sharply on the SHFE, which is also a major concern for Aluminum traders as it is the intermediate product that comes before refined Aluminum.

If we look back, a sharp rise was seen in Aluminum prices during the end of 2024. A similar move higher was seen in May 2024, which has led us to the current levels. Meanwhile, Alumina prices declined during these times, which also led to downward pressure on Aluminum.

Despite all the setbacks, the prices of aluminum will likely remain stable. The reason? Demand is still strong, especially in China, which is a big market for Aluminum.

Overall, we are now moving away from the era of high rates and are now entering into the era of lower rates. So, it only makes sense for the global economy to also register strong growth.

direct result of this change is the increased consumption of aluminum, copper, and other metals. So, it makes sense to think that the prices of Aluminum will be a lot higher than they were during the era of high rates.

The fundamental situation supports higher prices of Aluminum, and that's a reality no one can escape from! That's why we believe that the recent downside in the Aluminum is only short-lived as the long-term trend remains bullish. That's apparent from the 7.5% gain seen in Aluminum prices within a period of one week.

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