Title: Copper Set to Outshine Aluminium in the Fourth Quarter of 2024, According to Morgan Stanley Analysts
In recent months, aluminium prices have surged ahead of copper, but experts at Morgan Stanley are predicting a potential shift in the market. While aluminium has seen an 11% jump in prices due to various factors like rising input costs and strong demand in China, copper is expected to benefit from improving market conditions.
The increase in alumina costs has been a key driver of aluminium prices, with prices reaching nearly $520 per tonne. The demand for aluminium in sectors like solar energy, grid infrastructure, and electric vehicles in China has also contributed to its performance.
On the other hand, copper has been under pressure due to global growth concerns and market positioning. However, analysts believe that copper is showing signs of recovery, with improving demand indicators in China and cleaner market positioning.
Morgan Stanley remains optimistic about both aluminium and copper for the fourth quarter of 2024, but they see copper as having a stronger potential to outperform aluminium. Despite this positivity, they warn that a worsening global economy could have a more significant negative impact on copper due to its sensitivity to economic fluctuations.
In conclusion, investors should keep an eye on copper as it may outshine aluminium in the coming months based on improving market dynamics and potential price rally. It’s essential to consider these factors when making investment decisions to maximize returns and minimize risks.