Assessing the Future of Aluminium: Key Areas to Watch

Watch: Four areas to keep an eye on for aluminium

It's no secret that aluminium prices have been facing a challenging outlook over the last few months, and after hitting a peak in January, they've now dipped by more than 7%. But are encouraging signs of life slowly beginning to emerge?

 

It's fair to say that aluminium prices have seen better days. But what's causing the slump? As major economies across the globe slipped into a widespread slowdown, aluminium products have followed suit – and it isn't quite clear just yet how long the weakness we're currently seeing could last. For the rest of 2023, we're keeping our eye closely on a few key areas that could help clear up a rather gloomy outlook.

As the world's largest consumer of aluminium, developments in China will be crucial for determining the direction of metals prices as we head into the last few months of the year. Encouraging signs are slowly beginning to unfold in recent data following the introduction of new stimulus measures, and we believe the boost to consumer spending could help to alleviate rising concerns over lagging demand.

The US dollar, Russia's market share of aluminium, and European production also have key roles to play – and while we're not entirely convinced that aluminium prices will return to their year-to-date highs anytime soon, we're just about starting to see the light at the end of the tunnel. In this video, ING's Ewa Manthey delves into the details.