Aluminum in buying zone below $2300 per metric ton

The metal closed Wednesday at $2259 per metric ton. Nevertheless fundamentals macroeconomic cycle signs and technical indicators point to higher prices ahead Harbor says. 

Harbor Intelligence says aluminum prices may be in a buying zone especially below $2300 per metric ton. After hitting $2500 prices entered a short term correction or pause phase Harbor says. The metal closed Wednesday at $2259 per metric ton. Nevertheless fundamentals macroeconomic cycle signs and technical indicators point to higher prices ahead Harbor says.

Factors that Harbor cites include the dollar which has recovered some lost ground but remains in bearish mode demand that remains in an upward trend despite losing some dynamism rising output costs and a contraction in Chinese production and frequent disruptions in Western nations. Harbor also notes inventory coverage has continued to fall toward historical averages and premiums are climbing to multi year highs.