HomeMarket NewsCommodities NewsCurrent spike in aluminium prices likely to be temporary, says Metal Bulletin Research

Current spike in aluminium prices likely to be temporary, says Metal Bulletin Research

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By CNBC-TV18 April 20, 2018, 1:41:22 PM IST (Updated)

Aluminum prices have surged in the past few weeks after the United States levied sanctions on several Russian businesses including Rusal, which is one of the largest aluminum producers in the world.


In an interview to CNBC-TV18, Alistair Ramsay, Head of Research at Metal Bulletin Research, spoke at length about the metal sector.

Ramsay said the current spike in aluminium likely to be temporary in nature.

"We are not foreseeing the latest spike in both London Metal Exchange (LME) prices and premiums as a long-term phenomenon,” he added.

According to him, increase in Chinese aluminum exports is the big threat to aluminium prices.

“There is little bit of sluggishness in Chinese steel consumption sectors particularly in the manufacturing products which for years have been the fastest growing products for Chinese steel like cars, washing machine,” Ramsay said.

Talking on copper segment, he said production rose 8% in Q1CY18 and expect prices at $7000/tonne in coming years.

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