With such an intense focus on the auto industry and the launch of the Ford F-150, it’s easy to lose sight of the bigger picture: that aluminum as a whole is used many different types of manufacturing all over the world. From that perspective, the momentum is as strong — if not more — than the microcosm of the auto industry. CNBC recently highlighted this in a report, and the outlook is very positive.
As sentiment turns increasingly bullish towards aluminum amid a backdrop of tight supply, analysts say the once-shunned base metal is finally at a turning point.
The metal has been trading near seventeen-month highs above $2,000 per ton in recent weeks and entered a bull market in late July, up more than 20 percent since a 2014 low of $1,677 in February.
“We’re probably now at a point where the aluminum market may be turning and that has everything to do with supply shutting down in China and as supply-demand re-balances across the entire industry,” Gaurav Sodhi, resources analyst at Intelligent Investor, told CNBC on Thursday.
For a more detailed look at the world aluminum market, including the impact of recent movement in the Chinese manufacturing industry, see CNBC’s full article.