Aluminum prices likely to remain under pressure

On June 12, according to media reports, an analyst at SDIC Anxin Futures said that aluminum prices may still be under pressure.

Several metals, including aluminum, have seen some recovery in recent sessions amid a weaker dollar and improved risk appetite, especially after the latest data showed more-than-expected U.S. jobless claims, analysts said. It may mean that the Fed may be less aggressive in tightening monetary policy.

For aluminium, however, the upturn may be temporary, they believe. Producers have been rapidly ramping up activity and output, analysts said.

As such, they expect a supply glut in the third quarter, which could pose a downside risk to metals prices. Analysts recommend taking profits on short-term rallies.