Aluminium Trading forecasts and signals

Which commodities to invest in in the summer of 2021Aluminum prices have been rising throughout the year. According to COMEX, futures contracts are trading above 2600 USD this week, which is 44% higher than the level of January.According to S&P Dow Jones Indices, the annual total return of the Dow Jones Commodity Index Aluminum, which tracks the metal market using futures contracts, is currently 34%.The increase in prices seems to be due to two interrelated factors, both of which are caused by the problems of climate change. Aluminum producers are trying to reduce greenhouse gas emissions, so their production has slowed down. Meanwhile, demand is growing, because the metal is vital for customers who are also working to reduce emissions.According to Nick Snowdon of Goldman Sachs, this creates a "unique paradox" for the industry. "Aluminum is necessary for technologies such as electric cars and solar panels, but its production generates a lot of carbon – 2% of all global emissions," he said at the end of last week.TrendsTo combat global warming, the aluminum industry must develop low-carbon technologies. As a result, the increased cost will be shifted to the buyers. And higher prices "will be required to encourage steel companies to invest in cleaner production methods against the backdrop of growing demand and slowing supply growth."In fact, Snowdon said that demand for this metal is growing at the same time as investment in new facilities outside of China is decreasing due to the tightening of climate policy.A significant part of the demand for aluminum comes from the electric vehicle (EV) industry, and aluminum is also needed for the production of beverage cans, packaging, construction and aerospace ...