Aluminium price rage: from resource scarcity to industrial upgrading, how much room for future growth?

The secret behind soaring aluminium prices: future trends and investment opportunities

As the global economy gradually recovers, aluminium prices have soared at an alarming rate over the past few months, attracting widespread attention from investors. So what exactly is causing aluminium prices to rise? And how will the aluminium market develop in the future? In this article, Will share in-depth insights on the increase in aluminium prices

One. Aluminium prices rose the main factors

1. Imbalance between supply and demand

Surging demand: Aluminium is widely used in construction, transportation, packaging and electrical industries due to its lightweight and corrosion-resistant properties. Against the backdrop of accelerating global infrastructure development, aluminium consumption has risen sharply.

Supply bottlenecks: Environmental policies implemented by major aluminium producing countries such as China have restricted production capacity, resulting in supply being unable to meet growing demand, thus pushing up prices.

2. Rising raw material and energy costs

Rising prices of electricity and raw materials such as bauxite and petroleum coke, which are required for aluminium production, have increased the cost of production and further pushed up the market price of aluminium.

3. Impact of international trade policies

Current trade tensions and tariff policies have challenged international trade in aluminium, driving prices up.

4. Economic recovery

The global economic recovery, especially the increase in infrastructure investment, further boosted the market demand for aluminium, which formed a strong support for the price increase.

5. Investor movements

Rising investor interest in commodities in an uncertain economic environment has driven aluminium prices higher.

II. Future outlook for aluminium

1. Sustainability outlook

Aluminium's recyclability makes it an important part of the future green economy. As environmental regulations improve, demand for aluminium will continue to grow, pushing up its market value.

2. Driven by technological advances

The development of new technologies will enhance the production efficiency and recycling rate of aluminium, reduce production costs and help stabilise the price of aluminium.

3. Rise of Electric Vehicle Market

With the popularity of electric vehicles and lightweight transportation, the demand for aluminium as a high-quality material will increase significantly, further pushing up the market price.

4. Risk of policy changes

Changes in environmental policies in various countries may significantly affect aluminium production regulations and investment direction. Low carbon policy will promote the development of clean aluminium production technology, which in turn may affect the future price of aluminium.

III. Outlook on Chart Technical Indicators

Recent chart analysis shows that LME primary aluminium futures are expected to challenge the US$2,900 price target in the next three to six months.

Summary

The rise in aluminium prices reflects the complex interaction between market supply and demand, production costs and the international trading environment. Aluminium will continue to play an important role in the market as environmental policies intensify and new technologies develop. Investors who are able to capitalise on these trends will find lucrative investment opportunities in the aluminium market in the future.

Disclaimer

Any information, views and analyses provided herein are for the author's personal sharing only and do not constitute investment advice or financial advice to any individual or organisation. Risks are inherent in the investment world and readers should fully consider their own financial situation and risk tolerance before making investment decisions.

The investment tools or strategies mentioned herein are not suitable for all investors. Readers are encouraged to view the contents of the article critically and consider their own understanding, preferences and objectives. Any interpretations or conclusions drawn from the article are the sole responsibility of the reader.

When investing, readers should seek advice from a professional financial adviser or investment consultant to ensure that their investment decisions are consistent with their own objectives and risk tolerance.

The author accepts no liability for any loss or damage arising from reliance on the contents of this article. In addition, market conditions and regulations may change and therefore the validity and accuracy of the information herein may vary over time.

In all cases, the ultimate responsibility for investment decisions rests with the reader. Please exercise caution and ensure that you fully understand the risks involved before investing.