Aluminum Seasonality Pricing

Aluminum pricing is strong, but will it remain so?

Aluminum is having a moment as people say. Inventory is up and overall demand is strong. Seasonal pricing as seen in the figure below is strong when 2018 YTD pricing is considered. We cannot rule out late year price increases of 2017, but we do believe that aluminum seasonal pricing will remain tepid given the lack of credit growth and funds flowing into commodities trading. If credit flow materializes we expect pricing to grow.