Emerging Markets Driving Aluminum Demand

A study released by the Bedford Report suggests that the rise in aluminum prices is driven by demand from emerging markets.

The editorial is quoted as saying:

Aluminum prices have been up most of the month, fuelled by a weak US dollar and the recent declaration by the Federal Reserve of its intention to buy $600 billion of Treasuries. Emerging markets have been a huge source of revenue as populations and economies in China, Brazil and Russia markets have become richer leading to higher levels of building. One of the fundamental reasons for the turnaround in the aluminum industry has been the continued production discipline demonstrated by China. From 2002 to 2008, China had been a net exporter of aluminum, but has since become a net importer. The Bedford Report examines the outlook for companies in the Aluminum industry and provides research reports on Alcoa, Inc. (NYSE: AA) and Century Aluminum Co. (NASDAQ: CENX).

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