Global aluminium prices are steadily growing amid the ongoing recovery of major international economics and the rise of demand for raw materials.
Over the past three months, aluminum prices have jumped by almost 25%, reaching almost historical highs. On the London Stock Exchange, the price of a ton of aluminum has reached $3,100 per 1 ton. This is only slightly lower of the record highs set of 2008.
According to analysts, the current growth of prices for the metal is supported by the energy crisis in Europe.
As analysts of the Russian Izvestia business paper said “aluminum production requires a large amount of electricity, so amid the rising cost of electricity, some enterprises in Europe are reducing or even stopping production.
According to them, the overall decline in aluminum production in Europe is estimated at about 700,000 tons per year. If the situation does not stabilize, prices may continue to rise.
Currently China occupies almost half of the aluminum market, with about 15% by the EU. The cost price is largely determined by the cost of electricity, which in turn depends on the cost of gas in the leading regions of production. As a result, the production of the metal declines, and the costs of producers are growing.
By: Eugene Gerden