Tag Archives: steady decline

Current Aluminum Market Analysis Figures Indicate Impending Changes

For the past six month the aluminum market has been enduring a steady decline in profits which has left investors looking for a bottom that experts predict is in fact approaching. It was a decline in the U.S. economy, coupled with a recent spike in oil prices, along with energy costs as a whole that were the major factors that contributed to this trend.

Other factors such as global supplies have also figured in heavily as well. However; certain impending market trends are expected to bring relief to investors according to aluminum market analysis figures that have been recently compiled.

Market analysts that predict an early end to the current economic down turn in the second half of 2008 are indicating that they expect a rebound in aluminum demand at a time when global supplies should be significantly lower than they have been in the past.

One area of manufacturing that is expected to show an increasing demand for aluminum products is the domestic automotive industry, due to recently enacted government fuel efficiency standards that are scheduled to begin being implemented at the first of the year. Also, an economic turn around should spur an increase in consumer demand for aluminum as well.

While experts in aluminum market analysis debate the exact timing of the expected economic turnaround they do agree on several aspects where they do tend to find common ground. One of these areas of agreement is that continuing growth in Asian economies, particularly China’s which shows no sign of slowing down which will contribute to overall global demand for aluminum.

Also, increasing inflation figures that continue to be seen in all Asian economies across the board indicate an impending upswing in profits for aluminum investors. Experts in aluminum market analysis also agree that a quick end to the sub prime banking crisis can only help in improving the overall outlook for aluminum investors.