Aluminum prices reach new heights not seen in three years. Since the world came to a standstill in April 2020, aluminum prices have increased by 83.53%.
Aluminum contracts traded on the COMEX rose to $2680 per ton on Friday, August 27.
Meanwhile, by far the world’s largest aluminum producer, China, has announced it will sell some of its reserves. Chinese authorities speak of about 70,000 tons. Whether this will be enough to compensate for the global aluminum shortage remains to be seen.
As the global economy recovers, demand for aluminum will increase. For the U.S., the world’s largest aluminum importer, the only options are to look for other sources of aluminum. However, the second-largest producer Russia has already announced an export tax. Shifting the focus to imports from Canada also remains difficult and will not be able to compensate for the shortage1.
The future prospects also remain exciting. With the infrastructure plans of the U.S. government and the push for EVs, the demand for aluminum will not leave in the unforeseeable future.