Aluminum futures have been trading within the range of 2,200 to 2,300 USD per metric ton as traders anticipate a more balanced Chinese aluminum market following the deficit in 2022. A key factor emerging in this market is the province of Yunnan, which has significantly increased its annual output capacity in the past five years. However, the region’s aluminum production is now threatened by a severe decline in rainfall, leading to multi-decade lows in hydroelectric power output.
Aluminum futures are mostly traded on the London Metal Exchange (LME), the New York Mercantile Exchange (COMEX) and the Shanghai Futures Exchange. The standard future contract size is 5 tons. Aluminum is used widely in aerospace applications, packaging, automobiles and railroad cars and as a construction material. The biggest producers of aluminum are: The Aluminum Corporation of China (Chalco), Alcoa and Alumina Ltd, Rio Tinto from Australia, UC Rusal of Russia, Xinfa from China, Norsk Hydro ASA from Norway and South 32 from Australia. China accounts for nearly 60 percent of global aluminum output. The biggest resources of bauxites, the raw material for aluminum are located in Australia, China and Guinea. The Aluminum prices displayed in Trading Economics are based on over-the-counter (OTC) and contract for difference (CFD) financial instruments. Our aluminum prices are intended to provide you with a reference only, rather than as a basis for making trading decisions. Trading Economics does not verify any data and disclaims any obligation to do so. .
Forecast
Aluminum is expected to trade at 2222.17 USD/Tonne by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 2081.83 in 12 months time.
Source: https://tradingeconomics.com/