Aluminium: Supply shock risk supports prices – ING

💡 DMK Insight

Aluminium prices surging past $3,500/t signals potential volatility ahead. The unconfirmed reports of disruptions at major Gulf smelters like EGA and Alba are critical for traders to monitor. If these disruptions are confirmed, we could see a significant supply squeeze, which would likely push prices even higher. Traders should be aware that this spike could attract speculative buying, especially if it breaks through key resistance levels. On the flip side, if the reports turn out to be exaggerated or false, we might see a sharp correction. Keep an eye on the daily charts for any signs of reversal or continuation patterns. Also, watch how related markets, like copper and nickel, react, as they often move in tandem with aluminium. For those holding long positions, setting stop-loss orders just below the recent support levels could mitigate risks. The next few trading sessions will be crucial in determining whether this price action is sustainable or just a flash in the pan.