Aluminium prices on the London Metal Exchange were trading consistently higher than $1,700 per tonne this week, for the first time since the start of 2020. But with market fundamentals poor, and a challenging global macroeconomic backdrop going into 2021, market participants were uncertain whether the uptrend would be sustainable.
The three-month aluminium price rose to $1,782.50 per tonne on Wednesday August 5, the highest intraday price since January 27, before settling back to $1,767 per tonne at the 5pm kerb close.Fresh speculative long positions on aluminium from cash trading adviseries (CTAs), funds and other financial institutions, which were hedging in the aluminium market, have...