Russia is the world's second-largest producer of aluminum, after China, which has had to shut down its factories due to Covid-19. As a result, prices are skyrocketing.
Coffee pods, cars, home interiors, and cans—aluminum is everywhere. However, production is struggling, and prices are skyrocketing: +132% in less than two years. The surge in prices has direct consequences for a window manufacturer in Paris: the price of aluminum is skyrocketing at its supplier, which is reflected in the price of its windows."Some customers are starting to put their renovation projects on hold," explains Catherine Guerniou, manager of La Fenètrière.
Will aluminum soon reach $4,000 per ton?
The price surge comes primarily from China, which produces 54% of the world's aluminum. Covid-19 is currently hitting one of the main producing regions. Furthermore, manufacturing aluminum requires a lot of energy to heat the furnaces. However, the price of gas and electricity, particularly in Europe, has skyrocketed."Electricity accounts for more than half of the cost of aluminum production. There have been (...) capacity reductions due to the fact that energy was too expensive," says Philippe Chalmin, professor at Paris-Dauphine University. According to some experts, the price of aluminum could reach $4,000 per ton.
