Russia is the world's second-largest aluminum producer after China, which had to put its factories on standby due to Covid-19. As a result, prices are skyrocketing.
Coffee capsules, cars, home interiors, and cans—aluminum is everywhere. However, production is running out and prices are skyrocketing: +132% in less than two years. The sky-high prices have direct consequences for a company that manufactures windows in Paris: the price of aluminum is skyrocketing at its supplier, which is affecting 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 increase comes primarily from China, which produces 54% of the world's aluminum. Covid-19 is hitting one of the main producing regions. Making 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 the cost of aluminum production. There have been (...) capacity reductions, linked 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.
