A shinier outlook for aluminium?
Aluminium has fallen behind in the base metals rally of the past few years; this year, prices have slid by about 10% as inventories have risen. But the metal, used in drinks cans, cars and aircraft, should regain its lustre. Supply looks set to tighten as high energy costs – production is far more energy-intensive than for other base metals – lead to plant closures, as commodities guru Jim Rogers recently pointed out. Demand from China, the world’s largest producer, is on the rise as consumers buy “increasing numbers of just about everything from drinks cans to cars”, says Eoin Treacy on Fullermoney. Chinese vehicle sales leapt by 23% in the first half of 2007. Xiao Yaqing of the Aluminum Corp. of China reckons Chinese aluminium demand will grow by 33% this year, while global consumption will rise by 10%.
