Strong fundamentals combined with the unwinding of a crowded hedge fund trade could send...


Strong fundamentals combined with the unwinding of a crowded hedge fund trade could send aluminum far higher. Cutbacks in Chinese production are being met with increasing demand, a recipe for rapid draws on stockpiles and popping prices. AA -1.4%. ETFs: JJU, ALUM.

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  • 1980XLS
    , contributor
    Comments (3360) | Send Message
     
    Aluminum is more based on the cost of production (read electricity) along with production capacity, unlike copper which is based on the scarcity and difficulty obtaining and/or the mining of raw materials.

     

    Until employment recovers in full swing, I will remain skeptical.

     

    That said, in this market, I guess anything can be bid up speculatively without sound fundamentals.
    9 Feb 2011, 07:02 PM Reply Like
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