Explosive price for a widely used metal. What it is and what it is used for10 July 2021
During the day on Tuesday, the London Metal Exchange appreciated, a metal widely used in industry, at a historic level. Of the six base metals traded, it grew the most.
Aluminum is a metal widely used in industry. It is light and therefore it is used in very large quantities in the naval and aeronautical industry. It is also a very good electrical and thermal conductor, so the electrochemical industry uses it in the form of wire, replacing copper electrical conductors, which are more expensive. The food and pharmaceutical industries buy it because it is a malleable metal.
Aluminum prices have risen to the highest level in 10 years on the London Stock Exchange. This year saw the largest increase, reaching $ 2,726.50 per tonne. With 40% you have a lot, being the largest increase among the six base metals.
Aluminum supply is under pressure, especially in China, as it is the world’s largest producer. The Beijing authorities are paying close attention to this issue, with aluminum production requiring high energy consumption. Pressure against aluminum producers has continued this week. Guangxi Province. This is the largest production center in southwest China.
Ã¢ â¬ ÅA number of Chinese policies have recently begun to affect aluminum production, pushing prices up. Policies such as capping electricity consumption are expected to be maintained for the rest of the year. Under these conditions, pressure will remain on the aluminum. Prices will not be able to fall as long as demand remains intact, said Wei Lai, an analyst at TF Futures Co.
Although it has a very wide use, aluminum had a weak evolution at the beginning of the pandemic. But now it is enjoying a rebound in consumer demand as economic activity recovers.
In the future, the analysis expects an increase in demand, along with the expansion of electric vehicles and renewable energies. This is good news for producers. There were times when they had to sell at very low prices and often at a loss.