Room for more price gains in the short term

摘要

Aluminium prices have rallied quiet strongly recently, but the move is seen more to dowith short-covering and the mechanics of the LME, rather than due to any change inthe fundamentals. As such, we have to wonder how long the rally will last and how far itmay travel. The physical market continues to show weakness in Europe, with premiumsfalling to levels not seen since 2010. In other regions, however, premiums are morestable. In fact, the generally low price structure, premiums and prices, combined witha bit of a rebound, has prompted some consumer interest in pricing fixed contracts fornext year.