Aluminium is forecasted to become the most liquid commodity in the third quarter of 2020 along with the increase that developed in the majority of other commodities.
Ibrahim Suabi, Director, TRFX Garuda Futures stated that among other metal commodities, aluminium has a consistent strengthening opportunity in the second half of this year.
Suabi said: “A number of positive sentiments were expected to support the strengthening of commodity prices. One of the main drivers is the demand for the development of the electric car industry in the world.”
"Among iron ore, copper, and others, aluminium is now the best, because along with the development of the electric car industry, despite Covid-19, demand will remain high.”
Furthermore, according to him the steps of the United States (US) which will flush stimulus worth US $ 1.5 trillion will also boost the price of these commodities. This factor will also push prices for other basic commodities.
On the other side, demand for aluminium will also continue to increase with military needs in multiple countries. According to him, with the geopolitical tension that has not abated, several countries will increase the manufacturing of weapons and aircraft made from aluminium.
"It means, the needs are quite large, this will lift positive sentiment towards aluminium, so I think the price that will remain stable is aluminium," he said.
The Director of TRFX Garuda Futures explained the strengthening of aluminium prices will continue to increase even with a smaller value base. He estimates that from the current price of around US $ 1,600 per tonne, aluminium will be valued at around US $ 1,800 per tonne in the third quarter of 2020 and will increase until the end of the year at around US $ 2,000 per tonne.
"The aluminium price increase is not too large, but stable, because speculation is not too much. Because speculators play a lot in gold oil and crude palm oil, "he said.
source https://www.alcircle.com/news/trfx-garuda-futures-indonesia-aluminium-is-expected-to-become-champion-in-the-second-half-of-2020-57257
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