Aluminium Price Fluctuations in 2024
- Sanctions on Russian Metals
Aluminum prices surged after the U.S. and U.K. imposed new sanctions on Russian metals. As the third-largest aluminium producer and Europe’s main supplier, This created concerns over supply, adding additional pressure to global commodity markets.
- Increasing Production Cost
Due to high energy costs in Europe from winter and geopolitical tensions with Russia, production cuts and tighter supply have occurred. Additionally, fluctuating alumina prices have increased production costs, driving up aluminum prices.
- Increasing Production from China
China’s June aluminium output hits decade high, H1 production grows by 7%,this increased in output help to fill the global demand. weak demand prospects in China and US with slow economic growth put pressure on prices
What is the Aluminium Future Price Trend?
- The aluminium price are expected to reach $2,430 in 2025, up from an estimated $2,354.9/ton in 2024, driven by increased industrial activity in sectors like automotive, packaging, construction, and renewable energy.
- Fitch Ratings forecasts aluminum prices to hold steady at $2,300/ton in 2026 and 2027, as future demand will necessitate restarting higher-cost smelters and expanding capacity outside China.
Latest Aluminium Price News
- LME Aluminium Gains $28/t; SHFE Rises $3/t This Week
- LME aluminium opened at $2,475/t, reached a high of $2,547.5/t, and closed at $2,533.5/t, up $67/t or 2.72%.
- On August 23, LME aluminium cash bid price and official settlement price rose by $28.5/t and $28/t, respectively.
- From Monday to Friday, LME aluminium price increased by $129.5/t or 5.46%, with the 3-month bid price at $2,508.50/t.
- SHFE aluminium benchmark price on August 20 increased by $3/t to $2,787/t, with the most-traded 2410 contract closing at RMB 19,925/t.
Source: alcircle.com
2. CHINA in 2024 Focuses on Green Smart-Aluminium
- Trade Shows: The 2024 Shanghai International Industrial Materials Exhibition · Copper and Lightweight Asia 2024, alongside ALUMINIUM CHINA, featured 600 exhibitors, 50,000 sqm, and 29,000+ visitors, including 2,400+ international attendees.
- Industry Focus: ALUMINIUM CHINA 2024 highlighted “Green Smart Aluminium,” advancing green and smart technology in aluminum.
- Business Matching: Nearly 900 business matching sessions were held, boosting industry exchanges and global trade.
Source: aluminiumtoday.com
3. Aluminium Prices Surge Amid China’s Raw Material Shortage
- LME Aluminium Price Surge: This week, LME aluminium prices hit a 5-week high at $2,435/t, spurred by an alumina shortage in China and a weakening dollar.
- China’s Market Impact: The shortage of alumina led to a rise in China’s A00 aluminium ingot price for the fifth consecutive day due to tight supply and high demand.
- Global Production Increase: In July 2024, global primary aluminium production increased by 3.54% from the previous month and 2.41% year-on-year, as reported by the IAI.
Source: alcircle.com
4. Aluminium Futures Fall on Weak Demand
- Aluminium futures prices on the Multi Commodity Exchange fell by Rs 1.40 to Rs 231 per kg due to weak demand from consuming industries.
- On Tuesday, aluminium prices declined by Rs 1.40 to Rs 231 per kg in the futures market as participants reduced their positions.
- The August delivery contract on the Multi Commodity Exchange dropped by Rs 1.40 or 0.6% to Rs 231 per kg in 3,113 lots.
- Analysts attribute the price decline to participants cutting down positions amid easing demand from consuming industries.
Source: money.rediff.com
