Aluminum demand remains strong enough that prices may recover, despite lingering problems still weighing down on world economies. Investors may play the recovery in aluminum with the new aluminum exchange traded fund (ETF) that is expected to launch next month.
United Co. Rusal, the world’s premier producer of aluminum, stated that aluminum prices will recover to $2,400 a metric ton by year’s end on healthy demand for the metal, reports Aya Takada for Bloomberg. Rusal previously projected in April that aluminum’s average prices will be more than $2,000 a ton for 2010. [Minor Metals to Get an ETF.]
In London, aluminum prices diminished 10% so far this year on concerns that the Europe debt problems and China’s conservative measures would reduce demand and slow the global recovery.
On the London Metal Exchange, aluminum three-month delivery is currently at around $1,988 a ton.