Citigroup stated in a report that aluminum prices are embarking on a structurally rising trend. Multiple favorable factors in the macro environment and fundamentals have led investors to front-load more medium-term bullish expectations into short-term prices. Aluminum prices have already broken through previous target levels, indicating strong capital inflows and a broad strengthening in the non-ferrous metals market.
The bank believes there is still further upside potential for aluminum prices. Therefore, it has raised its 0-3 month price target to $ 3,400 per ton, primarily supported by strong short-term momentum and policy-driven demand. However, the bank noted that due to path dependency in the market and the lagging effect of physical indicators, it remains cautious about the slope and speed of the rally. This implies that there is still a risk of periodic pullbacks.
