Aluminum Prices Reach Three-Year High: Reasons and Effects

Historical Increase in Aluminum Prices

Aluminum prices have reached their highest level since May 2022 following a reduction in trade tensions between the USA and China. Last week, a trade truce between the two countries positively influenced investor pricing, initiating a recovery process in metals.

The Impact of Market Sentiments

In October, aluminum prices increased by over %7, surpassing 2,900 dollars per ton. At the same time, China's approach to the official limit on aluminum production allowed it to benefit from the shrinking market.

Remarkable Rise in Copper and Other Metals

On the other hand, copper and other metals have been priced at record levels due to unexpected production cuts from Asia to Africa. However, alongside this positive trend, there are also risks.

Slowdown in the Chinese Economy

Particularly, the slowdown in the Chinese economy is raising concerns in the markets. The country's private sector manufacturing index has dropped to 50.6, falling below expectations.

Conclusion and Future Expectations

The USA-China trade agreement has supported price increases by reducing uncertainties in the global economic outlook. It is reported that the parties have reached a comprehensive consensus and that contentious issues will be revisited in a year. This situation holds great importance for the future of commodity demand.