Aluminium rockets above the $2,700/mt mark at the LME

Aluminium rockets above the $2,700/mt mark at the LME

A mix of dollar weakness, upbeat demand expectations and rising inflation concerns fuelled further gains across the metals spectrum the previous week. The primary aluminium price took advantage of the positive momentum and as such rocketed above the psychological limit of $2,700/mt at the LME.

In more detail, the light metal ended at $2,640/mt on Monday (04/04), moving down to $2,626.50/mt on Tuesday's ring. Wednesday saw the primary aluminium price reaching $2,656.50/mt while on Thursday pushed further up to $2,694/mt. Aluminium ended the previous trading week by reaching a three-year high at $2,706/mt.

Aluminium demand is rising steadily and could wipe out global oversupply by the end of 2011, metals producer Hydro said as European aluminium prices rose to their highest since September 2008. "We began this year with an overcapacity of more than 1 million tonnes," Norsk Hydro CEO Svein Richard Brandtzaeg told Reuters. "Now we see that demand is strengthening surely and steadily and I hope there will be a balance between supply and demand in the course of the year."