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Hey there, fellow aluminum enthusiasts! Rina Meng here, ready to take you on a wild ride through the world of aluminum prices. It’s like a rollercoaster of economic growth and metal madness that will leave you on the edge of your seat (or should I say, on the edge of your aluminum chair?). So, strap yourselves in and get ready for an aluminum adventure like no other!
Let me start by telling you about the latest twist in the aluminum market. Brace yourself, folks, because China is in the driver’s seat! They’ve made a pledge to boost economic growth, and that’s sending aluminum prices soaring. It’s like a rollercoaster fueled by the power of the dragon! Just recently, aluminum prices took a 1.09% leap to 199.7. That’s like a loop-de-loop that leaves you breathless and exhilarated!
Now, let’s break it down. According to the International Aluminum Institute (IAI), global primary aluminum production in the first half of 2023 increased by 1.8% compared to last year. And you know who’s leading the charge? You guessed it—China! Their output is expected to rise by a whopping 2.8% to 20.25 million tonnes in the January-June period. It’s like China is the superstar of the aluminum world, showing off its metal muscles and driving the market forward.
But hold on, my metal-loving friends, because there’s more to this rollercoaster ride. While China is riding high, Western and Central Europe are facing some challenges. Production in these regions is down 9.2% to 1.345 million tonnes. It’s like they’re stuck on a loop that they can’t break free from. Rising energy prices following the Russia-Ukraine conflict in 2022 have taken a toll on their aluminum production. It’s like a never-ending battle between energy costs and metal production.
Now, let’s zoom out and take a look at the bigger picture. The world economy is expected to grow by 3% in 2023, according to the International Monetary Fund. That’s like a slow and steady climb up the rollercoaster track. But hey, it’s progress! However, central banks are raising policy rates to fight inflation, which is putting a damper on the overall growth. It’s like a speed bump on the rollercoaster, slowing things down a bit.
So, what does all of this mean for the aluminum market? Well, my friends, the technical indicators are showing some interesting patterns. Open interest in the market is on the rise, indicating fresh buying. It’s like a surge of excitement from investors who see the potential in aluminum. The price is currently supported at 198, but if it dips below that, we might see a test at the 196.1 level. On the flip side, if the price breaks out, it could test 202.1. It’s like a game of cat and mouse between the bulls and the bears, with the aluminum price as the prize.
Overall, my metal-loving pals, the world of aluminum prices is like a thrilling rollercoaster ride. It’s like a wild adventure that keeps us guessing and on our toes. China’s pledge to boost economic growth is like the engine that propels this rollercoaster forward. So, hold on tight and enjoy the ride!
Thank you for joining me on this aluminum adventure. Remember, when it comes to the metal market, it’s all about embracing the twists and turns and finding opportunities along the way. So, keep your eyes on the aluminum prize and ride the wave of economic growth!
Catch you on the flip side with more metal tales! Stay metal, my friends!
