Trafigura Says Aluminum Rally Is ‘Over Done’ as Supply Returns
- Trafigura analyst Van cites rising supply and poor demand
- Manufacturing demand outside of China contracting, he says
Rolls of aluminum conductive materials at a production facility in Huntington Beach, California.
Photographer: Kyle Grillot/BloombergThis article is for subscribers only.
Aluminum prices should decline by at least 6% over the next six months as supply returns to the market and high interest rates continue to crimp manufacturing demand, according to an analyst from Trafigura Group, one of the biggest traders of the metal.
“We’re looking at a very grim demand picture right now,” metals analyst Henry Van said at the CRU World Aluminum Conference in London on Wednesday. “It’s a fundamentally overdone rally.”