Latest national manufacturing and aluminum industry data around the globe continues to show acceleration in aluminum demand. Regional U.S. manufacturing data for January (Chicago, New York, Milwaukee) shows output and new order grew at a multi-year high. China is soaking up large quantities of aluminum from the outside. Net imports of primary aluminum plus scrap in December were 4.4 million tons annualized, but if we look at the gap between aluminum semis output and primary aluminum demand, the need of outside material goes as high as 5 million tons annualized. Global visible inventories, in terms of weeks of consumption, continue with their downward trend. LME cancelled warrants stand at a record high. HARBOR intelligence’s proprietary aluminum market balance continues to show the market remains in growing monthly deficit. Our short and long term global economic leading indicators continue to point to more growth ahead. Our proprietary aluminum market sentiment index is well inside bullish territory. In this context, a stronger U.S. dollar, return of confidence (measured by the VIX index and Bloomberg index), higher interest rates in Australia, Norway, Israel, and the start of quantitative tightening in China are in our view confirmation of growing conviction that global demand is not only in a self sustaining growth mode but that monetary authorities see higher prices ahead in the economy. (Source: Aluminum Association)