Aluminum Spot Price
The aluminum spot price is $1.0526 per pound more or less. But like other traded metals, its price will move depending on the issues that affect it.
Prospects
Based on industry observers, aluminum suppliers will experience a sharp increase in value. A slightly lower increase is also seen with aluminum demanders.
However, investors must also keep oversupply in mind. This has the potential to bring prices down. The long term assessment for aluminum is still favorable.
Aluminum’s myriad uses are its main strength. This means demand for it will remain high for the foreseeable future. Another plus is its recyclability. This aspect helps ensure a steady supply.
Second, this makes it environmentally friendly. This is its main advantage over other metals like lead. There are a few challenges facing aluminum. Foremost would be carbon fiber. Carbon fiber has properties similar to aluminum.
Aluminum Trade Assessment
Market analysts believe that aluminum values will decrease for the short term. But as stated, the long term view is highly favorable. For a long term investor, it would be a good idea to hold onto them. For short term investors, it is better to check the aluminum spot price daily.
Production
The emergence of new power contracts in 2007 led to the increase in aluminum production, beginning in 2008. The height of production peaked at the first half.
Production slowed down for the second half of the year. The major reasons are power supply issues and rising electricity costs. In August 2008, prices took a sharp turn down.
Overall, world production has been on the increase. The expansion is not limited to the United States. Based on a report by the International Aluminium Institute, inventories reached a total of 2.8 million tons by the end of 2007. Today, the global production is now second only to iron. The US aluminum exports grew by 35% in 2008.
Primary Aluminum
Primary aluminum prices increased around July 2008. But it went down shortly thereafter. The cost of primary aluminum for that period hovered around $1.136 per pound. Prices reached their peak in 2008 at $1.426 per pound. The pricing at the US market was echoed in the London Metal Exchange (LME).
While the aluminum spot price continues to fluctuate, it has a promising outlook in the long term. For those who are looking at the short or medium term, it is best to keep abreast of issues so you know when to make a move.
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