It’s not just copper that’s marching higher, aluminium is dancing a similar jig heading towards its highest level in years. This year is increasingly being described by aluminium producers and traders as a “gap year”, a pivotal period where years of underinvestment and constrained supply are colliding with rapidly accelerating demand. The metal sits at the centre of global electrification, power-grid expansion, EV production and aerospace demand, yet new smelting capacity is struggling to keep pace due to high energy costs, environmental restrictions and limited spare capacity.
For ASX investors, the most direct beneficiaries are South32 (ASX: S32) which has significant aluminium and alumina exposure, and Alcoa (ASX:AAI), which is listed on the ASX as a CDI after taking over Alumina (ASX:AWC) in 2024.
- We believe the ASX aluminium stocks should be bought into dips over the coming month.
MM is bullish towards Aluminium ~$U3650
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