German company Speira managed to increase its aluminum refining production more than twice and hit the level of 650,000 tons after buying Real Alloy Europe.
Speira owns the world’s largest aluminum finishing plant. The company has announced a rise in its ability to use the processed metal in the production of low-carbon aluminum products as a result of its capacity expansion.
February’s purchase of Real Alloy Europe increased the plant’s capacity by 350,000 tons. The investment package consisted of three facilities, including an aluminum and magnesium refinery located in Germany and a salt slag recycling plant in Norway.
CEO of Speira Einar Glomnes said that the company intended to become a leader in aluminum production and refining, and it might help to accelerate the decarbonization of the business.
Increased Speira’s production as the largest aluminum refinery will lead to rising supply in the market, and this event was already recouped by selling the metal during yesterday’s trading session. If the company’s increased productivity will stimulate a rise in demand for the processed metal in low-carbon aluminum production, it could further increase the value of the metal.
Aluminum prices are out of the M30 timeframe downtrend, leaving behind a price gap. The gap’s closure might take some time, but the growth outlook for the white metal increased after the price left the downtrend.
The Relative Strength Index (standard values) on the M30 timeframe shows divergence, or the gap between the price direction and the indicator’s curve. The figures demonstrate a change in the course direction to an increasing trend.
According to the wave analysis on the M30 timeframe, the price is in the second downtrend wave. There is a possibility that this second wave has already transformed into the third rising one after breaking out of the downtrend. The situation will be clearer after the formed rollback.
Aluminum prices are in the bargain zone.
The short-term outlook for aluminum suggests buying.
The target is at the level of 2,425.
Part of the profit should be fixed near the level of 2,390.
Stop-loss is at the level of 2,315.
Bullish trend has a card character, so it is worth to choose the trading volume of no more than 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.