MARKET TALK: Aluminum In 100,000-Ton Deficit In '07

The global aluminum market looks set to be in a 100,000-metric ton deficit in '07 and has lagged the other base metals because it doesn't have their tightness, says Natexis Commodity Markets. LME aluminum will average $2,600/ton in '07 against $2,567/ton in '06, Natexis notes. Current prices are being supported by speculative activity, but "sizeable deliveries" into LME warehouses show there's "no acute shortage of material, and that prices may trend lower as the year progresses," Natexis adds. LME aluminum trades at $2,711/ton, up from $2,705/ton earlier.