Concerns over tight supplies have driven aluminium prices to their highest level since last October. A tonne of the industrial metal is now trading at more than $3,100 a tonne. And the trend doesn’t appear to be reversing anytime soon.
There are several reasons for the rising price of aluminium on the world market. The biggest is the lack of production of the industrial metal in China, which is the world’s largest producer. The most populous country accounts for about 56 percent of aluminium production. But because of the ongoing Winter Olympics in Beijing, aluminium production in China is stalling. According to analysts, the Chinese authorities have ordered producers to reduce emissions of pollutants into the air during the Olympic Games.
The escalating tensions between Russia and Ukraine and growing fears of a military conflict are not helping to calm the market. Russia is the second largest producer of this industrial metal after China, with a share of around six per cent.
The price of aluminium on the market has surpassed USD 3 100 and for a moment even surpassed the levels of last October. Since mid-December alone, aluminium has already risen by more than 20 per cent.
