Output cuts driving aluminium price rise, analyst says

Global production curtailments are driving a recent spike in domestic and international aluminum prices, according to Morgan Stanley Research analyst Adam Longson.

Aluminium last week replaced zinc as the top-performing metal in the second half of 2014, Longson said in an August 18 report. "We think sustained non-China production curtailment is the primary factor behind the strength, illustrated by declining exchange inventories and steepening near-term backwardation." Monthly production data for July showed that Brazil’s output had reached a multi-decade low as the legacy of weak pricing and high spot...

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This article was first published by AMM

August 19, 2014

04:01 GMT

New York