Metals Traders Zero In on Aluminum as Green Revolution Arrives
- Aluminum climbs to 10-year high as deepening deficits loom
- Investors increase speculative exposure to aluminum on LME
Aluminium ingots at the United Co. Rusal Sayanogorsk Aluminium Smelter in Sayanogorsk, Russia.
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
Investors have been piling into aluminum during its ascent to a decade high, with a combination of booming demand and seismic supply reforms helping the lightweight metal to avoid a speculative exodus seen in other metals markets.
Total non-hedging positions in London Metal Exchange aluminum contracts have more than doubled since a nadir in May, while speculative exposure in other industrial metals including copper and zinc has tumbled. And while concerns over tighter Federal Reserve policy have pressured many commodities markets, aluminum has rallied to a 10-year high as the industry braces for deepening deficits.