Aluminum prices continue rising up
Aluminum prices are reaching 10-year highs as a supply chain rattled by challenges fails to meet recovery demand.
Source: London Metals Exchange
From beverage cans to airplanes and buildings, aluminum is widely used in all areas of life and production. Before the outbreak, the global aluminum market was in a dilemma of oversupply. Aluminum prices have entered a downward trend since their peak in 2018, but the sudden epidemic disrupted the market supply and demand situation. On the one hand, as the economy unblocked, demand was released.
On the other hand, the disruption of the global supply chain has exacerbated shortages in some regions. According to the "Wall Street Journal" report, although there is enough aluminum for global circulation, due to supply difficulties, most of the supply is trapped in Asia. Shipping ports such as Los Angeles and Long Beach are overwhelmed with orders, while the supply of containers used to transport industrial metals is in short supply, and freight rates are skyrocketing. This trend has also led to price increases.
