Morgan Stanley predicts copper prices may catch up with aluminium

According to the latest news, Morgan Stanley analysts pointed out in a report released on September 2, aluminium has recently outperformed due 

to rising alumina prices and strong demand from solar energy, power grids and other industries, compared to copper, which has been under pressure 

due to global growth concerns and investors' “excessive” positions. However, this situation is about to change.

The report highlights that the strong performance of aluminium has pushed the copper-aluminium ratio to the bottom of its range since 2024,

 and that copper is gradually showing the potential to regain lost ground after a series of adverse factors. According to Morgan Stanley analysts, 

copper's fundamentals are improving and previous predictions of a decline in copper positions to more normal levels have materialised, providing 

strong support for higher copper prices.

It is worth noting that the current net long position of aluminium on the London Metal Exchange (LME) is at a high level, while copper is expected

 to take this opportunity to narrow the gap with aluminium. Analysts say that given copper's recent underperformance and positive changes 

in fundamentals, there is a stronger case for copper prices to rise, and it may be expected to catch up with aluminium's performance in the future.