Aluminum rose to the highest level in 18 months on the London Metal Exchange after a report showed U.S. durable goods orders soared to a record high.
Prices also rose after Alcoa Inc., the largest U.S. aluminum producer, said it will close its smelter in Italy.
In late August, aluminum for delivery in three months climbed 1.8% to $2,100, the highest level since February 2013. For comparison’s sake, copper futures rose only 0.1% to $7.084, nickel climbed 1.1% to $18,949.
The main driving force is growing volume of durable goods orders in the United States. For example, in July 2014 the indicator surged 22.6% from the previous month driven primarily by a burst of new orders for civilian aircraft. New orders for civilian airplanes skyrocketed 318% after Farnborough International Airshow in July. The aerospace exhibition is held every other year and the indicator’s growth was the largest since January 2011. According to the Aluminum Association, aluminum alloys account for nearly 80% of the material used in the components of modern aircraft.
