Aluminum has been a consistent winner this month, tacking on a 10% gain in near-term prices.
Aluminum’s rise started before the COVID-19 vaccine announcements that positively affected multiple asset classes on November 9. Still, the expectation of greater economic output has helped raw materials gain.
Clients have recently reported greater-than-expected demand in automotive and building & construction sectors.
Bottom Line: Base metals, associated with global economic output, are likely to rise in the short term due to increased consumer demand, physical market imbalances, low interest rates, and a weak USD. The primary aluminum market surplus continues to be ignored by the market.