Aluminum prices continue to decline as the technical picture confirms the medium-term downtrend with a target of $2,500 after consolidation in the range of $2,542-2,620.
Over the past three weeks, aluminum prices have dropped by 24%, off a peak of $3,229 to today's price of $2,595. Apparently, a chain reaction was set off as the collapse of coal prices triggered by China spilled over to a decline in the price of aluminum along with other energy-intensive metals.
In the long term, aluminum is still doing quite well: it is used, among other things, to manufacture equipment for renewable energy sources. A shift of interests in this direction will occur within the next 30-50 years, so strategic demand can be expected to persist.