Minmetals Futures: Aluminum Prices Expected to Rise Short-Term Supported by Energy Costs and Supply Disruptions

The U.S. and Iran are engaged in negotiations, but military actions continue. Crude oil prices remain strong, and market risk appetite is still relatively pressured. Aluminum prices are supported on one hand by energy costs and supply disruptions, while on the other hand, they are suppressed by sentiment. In terms of industry, maintenance and production cuts at overseas aluminum plants will still lead to substantial reductions. Over the weekend, attacks on aluminum plants in the UAE and Bahrain have heightened supply concerns, and overseas aluminum supply is expected to remain tight. Domestically, downstream operating rates continue to rise, and aluminum rod processing fees have returned to a relatively normal level, which helps with inventory digestion. Short-term aluminum prices are expected to reach new highs. (Minmetals Futures)