Huatai Securities believes that current market pricing for aluminum is overly pessimistic regarding future supply and demand. While concerns exist about overseas production expansions in Indonesia, India, Angola, and Saudi Arabia, the firm anticipates a tight balance due to domestic capacity limits and uncertainties in overseas power infrastructure. Rising global electricity costs and increased demand from AI could lead to significant shortages. Huatai Securities forecasts that the cost base for high-cost smelters will continue to rise, with a floor price for overseas aluminum around $3000/ton by 2027-2028, suggesting the current equity market valuation for the aluminum sector may be undervalued. AI
IMPACT Potential increases in AI-related demand could influence future aluminum supply and demand dynamics.
RANK_REASON The item is an analysis and forecast from a securities firm regarding commodity prices, not a direct industry event.
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