Aluminum on course for rise, deficit: analyst

Apr 11, 2014 | 03:59 PM | Michael Cowden

Tags  Northcoast Research, Lloyd O'Carroll, aluminum prices, Midwest premium, London Metal Exchange, LME, auto body sheet, aluminum Michael Cowden

CHICAGO — Aluminum prices are set for a turnaround as production cuts and increased demand are poised to drive years of supply deficits, one industry analyst said.

Those deficits—projected to grow to 3.8 million tonnes by 2017 from 900,000 tonnes in 2014—will be spurred in large part by revved-up aluminum consumption in the automotive sector, Lloyd O’Carroll, an analyst at Cleveland-based Northcoast Research Holdings LLC, said in a report.

"Aluminum has been the most hated space (both the commodity and equities) in recent years and bears abound. We believe that view is now out of date," O’Carroll said, adding that his view was that of an "out-of-consensus bull."....

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