CRU: Aluminum Price Climbs Higher

By Stephen Williamson, CRU Research Manager, Aluminum

Last week’s aluminum price below $3,000 per metric ton on the LME seemed like a bargain until it ran above $3,300 earlier this week. Yet, at week’s end, trading fell back to $3,050. Further confounding the market is magnesium supply and the prices raging on the hardener front. Fueled still by sustained energy constraints in China and tightening supply of alloy hardeners, global producers are scrambling to both secure physical metal supply and match all forward sales with bona fide supply. The price ended the week just over $3,100 and is supported there on the short supply of primary aluminum and key alloying hardeners, silicon (Si) and magnesium (Mg).