The price of aluminum on Monday rose to new highs at $3,044/t. The upward trend has been in play since May 2020 and still continues to gain momentum. Prices could reach $3,200 in the medium term.
A key trigger for the aluminum rally was the latest news on targets for curbing industrial energy usage in China. This triggered a reduction in working capacity, which, in turn, could translate into a decrease in aluminum supply.
At the same time, the demand for aluminum this year increased by 50% due to strong industrial demand for the metal, ranging from the production of containers for the food industry to electronics and smartphones.