Russia is the world's second largest aluminum producer after China, which had to shut down its plants because of Covid-19. As a result, prices are rising.
Coffee canisters, cars, interiors of homes and canteens, aluminum is everywhere. However, production is booming, and prices are rising: +132% in less than two years. The flamboyance of the courses has direct consequences for a company that manufactures windows, in Paris: the price of aluminum is sent to its supplier, which is reflected in the price of its windows. " There are clients who are beginning to put renovation projects on hold," explains Catherine Guerniou, manager of La Fenètrière.
At $4,000 per ton of aluminum?
The price flamboyance comes first of all from China, which produces 54% of the world's aluminum. Covid-19 is set to become one of the main producing regions. Now, making aluminum requires a great deal of energy to heat the furnaces. However, the price of gas and electricity, especially in Europe, has gone up. "Electricity represents more than half of the production cost of aluminum. There have been (...) capacity reductions, linked to the fact that energy was too low," analyzes Philippe Chalmin, professor at Paris-Dauphine University. According to some experts, a ton of aluminum could reach $4,000.
