2016 Was A Great Year for Aluminum Markets
2016 was certainly an interesting year; between Brexit and the enormously capricious U.S Presidential election, a lot of folks in many industries of the world found it hard to shake uncertainty in their trust in market stability.
Despite the overall negativity that seems to be extra pervasive as of late, the aluminum market has reason to remain optimistic- as 2016 showed consistent positive growth in all areas of the aluminum sector with aluminum prices rising by 15% over the course of the year, with 2017 showing no sign of slowing progress.
Since Donald Trump’s win in the American presidential election, a variety of commodities have experienced a surge in price and overall positive market sentiment, aluminum included, with prices nearly breaching the $1,800 price level.
There are a few key factors here that have effected aluminum prices. First, following Chinese curtailments in the 3rd quarter of the year, alumina appears to be inching towards a supply deficit. In addition, higher coal prices have also propped up aluminum’s market price. The cost curve for global aluminum shifted upward steadily after the 1st quarter, when China’s aluminum production slowed.
And the overall positive trends are showing no signs of stopping going into 2017.
Back in December 2016 the U.S Federal Reserve hiked the interest rate by 0.25%- a move which would seem to indicate that they believe in the overall world economy strengthening, with anticipation for more rate hikes in 2017. US aluminum demand could potentially be impacted by this hike. As the U.S dollar becomes a stronger currency, commodities tend to drop in price; but a stronger dollar also makes American aluminum costlier in foreign countries.
Furthermore, President Donald Trump’s proposed infrastructure investments could mean a lot of business for industries like steel and aluminum- as investments in bridges, highways, and power grids could boost the demand for extruded aluminum. Of course, it’s hard to tell whether or not all or any of these projects will pass through.
Taber Extrusions is looking forward to another year and another opportunity to prove that we have the broadest capabilities in the aluminum extrusion industry and aluminum fabrications services that are second to none. Are you ready to make 2017 another great success?
For more information or to request a quote, please call us today ay (800) 563-6853 or e-mail us at firstname.lastname@example.org