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Exchange trading in metals or why it is profitable to invest in aluminum

23.09.2022

Many industries use aluminum for production, so the demand for aluminum is a good indicator of the capacity of the manufacturing industry. Manufacturing is an important part of GDP, especially in fast-growing emerging economies, so investing in aluminum is a way to bet on global GDP growth.

Many industries use aluminum for production, so the demand for aluminum is a good indicator of the capacity of the manufacturing industry. Manufacturing is an important part of GDP, especially in fast-growing emerging economies, so investing in aluminum is a way to bet on global GDP growth.

Here are some of the best specific reasons to invest in aluminum.

1. Betting on Chinese demand

China produces and consumes a large percentage of the total global aluminum market. In recent years, China's fast-growing economy needed aluminum for construction, transportation and electronics, and Chinese companies supplied the metal.
However, as China's GDP declined, domestic demand turned out to be quite weak, and Chinese manufacturers increased aluminum exports to the United States and other countries. If economic growth in China accelerates, the demand for aluminum in the country will grow. This can create a shortage of supply and higher prices.

2. Bet on the demand for transport

The global economy depends on transport. The aluminum market may grow as the global economy expands and demand for vehicles increases. People need cars and trucks to travel to work.
Economic growth in industrialized and developing countries should increase the demand for aluminum among transport manufacturers.

3. Diversify your portfolio

Investing part of the portfolio in aluminum along with other metals in general is a great way to diversify assets.