Aluminum prices showed increased volatility on Monday: earlier in the session, quotes updated their maximum since April 2022, but then began to decline.
The price of aluminum futures on the London Metal Exchange (LME) fell 1.1% to $3,387 per ton by 16:07 GMT. During the session, quotes rose 2.8% to $3,544 for the first time since April 2022.
Over the past week, aluminum has risen in price by almost 10%, recording its highest growth in three years, amid fears of supply disruptions from the Middle East, which accounts for about 9% of global production of this metal. Two aluminum plants, in Qatar and Bahrain, were forced to suspend deliveries due to armed conflict in the region.
“A prolonged war will hurt aluminum supplies,” said Gao Yin, an analyst at Shuohe Asset Management Co. According to her, consumers are building up aluminum stocks in case of such an event.
For a more detailed overview of global aluminum production from 1970 to 2024, watch the video on the YouTube channel Experts Club.
