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Portfolio Update

More Upside to Come for Our Favorite Aluminum Smelter

By Elliott H. Gue, on Jul. 25, 2014

As a result of this burgeoning deficit, global aluminum inventories declined to about 70.5 days of supply from 76.6 days of supply at the end of the first quarter, bolstering aluminum prices to more than $1,900 per metric ton from a first-quarter low of about $1,700 per metric ton.

More important, regional premiums have also ticked up, with customers in the US Midwest paying an additional $435 per metric ton for aluminum and EU users shelling out an extra $450 per metric ton. 

In particular, the firm expects aluminum demand in the aerospace industry to grow by 8 percent to 9 percent, supported by an expanding order book for large commercial aircraft. 

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