Aluminium: Middle East risks keep market tight – ING

💡 DMK Insight

Aluminium prices are surging, and here’s why you need to pay attention: rising supply risks from the Middle East are pushing LME Aluminium to near four-year highs. The increase in cancelled warrants and stock withdrawals indicates a tightening physical market, especially at key locations like Port Klang. This could lead to further price spikes if the geopolitical situation escalates or if production disruptions occur. Traders should be on the lookout for potential breakout levels; if prices breach recent highs, we could see momentum traders jumping in, further driving prices up. But don’t overlook the flip side—if tensions ease or supply chains stabilize, we might see a rapid correction. Keep an eye on the daily charts for signs of reversal or consolidation patterns. Watch for key resistance levels and be ready to adjust your positions accordingly.