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Aluminium prices may go up over medium term, says Crisil Research
The price of aluminium is likely to go up in the medium term due to factors like surge in demand, Crisil Research on Tuesday said.
The price of the metal fell 45 per cent from the March 2022 peak to around 2,400 dollar per tonne now due to factors like lockdown in China.
"Aluminium prices have likely bottomed out and should rise over the medium term, supported by two structural drivers: limited smelter capacity additions and uptick in demand," it said in a statement.
Limited capacity additions over the next five years will be crucial to pick up in the prices of aluminium, it said.
The demand for aluminium is likely to see a structural growth over the medium term on account of global green investments, including electric vehicles, solar panels and renewable energy grids, most of which have high intensity of aluminium use.
"Green investments across major economies will lead to a strong uptick in demand for aluminium, but global capacity addition is expected to fall from 20 MT during