On July 19, I told you about one of the biggest opportunities in commodities since 1997.
If you missed my analysis, the point was simple: Aluminum hasn't been this attractively priced in more than 15 years.
But aluminum's depressed price levels aren't the only reason I'm bullish on the metal. In fact, there's another catalyst affecting this commodity right now... and it could increase demand by more than 200% in a little more than a decade.
Before I get into that though, let me ask you this...
Does your car get 54.5 miles per gallon?
Mine doesn't. Not even close. But that's the mandate that has been set down by President Obama's Corporate Average Fuel Economy (CAFE) standards.
And while you may not have heard about this government edict, the automakers know all about it. The 54.5 miles per gallon rule doesn't go into effect until 2025, but automakers are still scrambling to meet the 2016 CAFE standard of 35.5 miles per gallon.
The United States isn't alone either. Other countries are implementing similar rules and regulations. So automotive engineers around the world are under pressure to find ways to squeeze out more miles per gallon from newer models.
As with any regulatory change, there will be winners and losers from these tighter fuel-economy standards. Judging by feedback from manufacturers, it seems that steel will relinquish some of its market share to aluminum.
Since aluminum is more lightweight than steel, aluminum supports better gas mileage when it's used to make cars. In order to meet the new CAFE mandate, automakers are using more aluminum in the automobile manufacturing process.
That's one reason aluminum usage in the auto sector could double by 2025.
One of the biggest aluminum miners -- Alcoa (NYSE: AA) -- is already starting to see the effects of the CAFE mandate...
In June, Alcoa's Randall Scheps told a group of industry executives: