Commodities: Aluminum
Gold (+77.5%) and copper (+69.8%) have been the standout performers over the past two years. Gold peaked when panic/speculative buying sent it up +122% in January 2026 before retracing, while copper has surged since mid-2025 as tariff-driven stockpiling compounded strong structural demand from electrification and AI infrastructure. Zinc (+49.5%) and Aluminium (+44.6%) have also delivered strong gains, benefiting from the same investment themes.
The QRE ETF has corrected by 15% over the past few weeks from its June high, and we would say it’s now in an optimal accumulation phase for investors who don’t want to run the gauntlet of earnings misses, operational issues, etc. However, with the ETF holding ~15% in energy and utilities stocks, we still think picking individual stocks is a better way to go for the moves that we’re targeting.
Are you still positive (see q nd a 27/6/26) on AAI (alcoa) after it’s purchase from s32.
Hi MM,
Plenty of discussion in the press (and in your daily reports/podcasts) about S32. and its aluminium divestments. Given you are bullish on aluminium and like S32, why is S32 getting rid of its aluminium operations a good thing? Also, S32 still have the Mozambique mine issues that they obviously couldn’t offload as part of this divestment.
Regards,
Peter
S32 +9.74%: announced the transformational sale of its aluminium, alumina and bauxite business to Alcoa in a deal worth up to US$5.6bn ($8.1bn), materially simplifying the portfolio and accelerating its transition toward a future-facing base metals producer. The consideration includes US$3.1bn in cash, around US$1bn in Alcoa shares, US$750m of assumed net debt and lease liabilities, plus a US$750m contingent value right (CVR) linked to aluminium and alumina prices over the next four years.
MM bought S32 last month for our Active Growth Portfolio when it wasn’t on our Hitlist; hence this morning we’ve discussed the stock and our reasoning to gain exposure to the miner following its recent pullback.
Base/industrial metals Copper (Cu) and Aluminium (AL) are two commodities that are benefiting from increasing demand for data centres and global electrification. While the specific uses for the two metals are different, their correlation is extremely close, as can be seen from the chart below, but their differences are understood by most investors:
Hi Market Matters Team
