Aluminum market sinks. Car production to be blamed.

Aluminum price decreased in more than 30 percent from last January

Yet, some chances for recovery with this strategic industrial metal are seen in last weeks.

Yet, price of aluminum ton on world commodity exchange was on the price of $2,500 last January. Since that the price decreased in more than 30 percent, while in October it seemed the fall wouldn’t stop even on $1,700 dollar. Last month brought some recovery and for example London Stock Exchange announced breaking the $1,800 per ton limit this week.

The dramatic aluminum price reduction is caused mainly by decreasing transport equipment manufacturing, which affected basically all parts of the developed world. And automotive production is one of the key consumer sector. The upcoming months will show whether we are dealing with a short-term situation only or whether that is a changing trend on the aluminum market. Car factories explain the current production decrease by high comparison base from last autumn. In that time, record-high amount of cars were sold before the Exhaust Emission Standards of Gasoline or Gas fueled vehicles came into force.

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