Aluminum Prices Reach 10-Year High Due to Soaring Demand and Logistics Disruptions

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] International aluminum prices have reached their highest level in 10 years due to logistics disruptions.

According to the Wall Street Journal (WSJ) on the 30th (local time), aluminum futures traded at $2,650 per ton on the London Metal Exchange (LME) that day.

This represents an increase of about 80% compared to May of last year, when prices fell due to the impact of COVID-19.

WSJ reported that although global aluminum production is sufficient, logistics disruptions caused by container shortages and soaring maritime freight rates are driving the price increase.

It also added that since most aluminum is stored in Asia, demanders in the US and Europe are facing significant difficulties.

Furthermore, last year China became a net importer of aluminum for the first time since 2009, which is also fueling the rise in aluminum prices.

WSJ reported that as China became a net importer, the LME moved aluminum stored in places like Rotterdam to Malaysia, which is closer to China.

This move is analyzed as a result of intensified competition among US and European companies to secure aluminum.

The media noted that unlike international copper prices, which have turned downward due to the spread of the COVID-19 Delta variant, aluminum prices remain strong, with companies in the US Midwest even paying record premiums of up to $761 per ton.

This content was produced with the assistance of AI translation services.