- Aluminum prices (LMAHDS03:COM) are hovering near 18-month highs, with the London Metal Exchange's three-month futures ending Friday at $1,863.50/mt, the highest closing level since April 2019.
- Other base metals also have been setting new highs on the LME, with tin touching a 15-month closing high of $18,570/ton and nickel reaching an 11-month intraday high of $15,870/ton.
- Base metals have rallied since China rebounded from its coronavirus lockdown, but aluminum trailed other metals because a large glut had built up in warehouses as smelters had been slow to reduce production as demand eased.
- After reaching their highest level in more than three years in July, stockpiles stored at LME-approved warehouses have since declined by 14% as factories have ramped up orders.
- There also have been signs that demand from global car makers has picked up, as European car sales rose in September for the first time this year.
- Potentially relevant tickers include AA, CENX, KALU, ARNC, ACH
- ETFs: JJU, JJUB
