On Wednesday, aluminium prices surged to their highest levels in 14 months, alongside other industrial metals reaching new peaks. Investors flooded into the sector, driven by optimism surrounding the global economy.
As per the data from MarketScreener, the benchmark three-month aluminium on the London Metal Exchange (LME) rose by 0.8 per cent to $2,480.50 per tonne by 1005 GMT, marking its strongest performance since February 10th of the previous year.
LME aluminium opened at US$2,459.5 per tonne in the previous trading day, with its high and low at US$2,494 per tonne and US$2,437 per tonne respectively before closing at US$2,471 per tonne, an increase of US$12.5 per tonne or 0.51 per cent.
The latest data buoyed investor sentiment, indicating a resurgence in metals demand. Manufacturing activity saw notable expansions, with China experiencing its first growth in six months and the United States marking its first positive trend in manufacturing in 1 1/2 years.
"That is something that has inserted some optimism in the market, and that has been taken up by hedge funds. The cyclical swings that are implied by these leading indicators are quite reliable. Given how resilient the U.S. economy has been and also how other parts of the world are faring, there's well-placed optimism in the market,” said Carsten Menke, analyst at Julius Baer in Zurich.
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