Aluminum Spot Price
Live aluminum prices and interactive charts
Frequently Asked Questions About Aluminum Prices
Why is aluminum valuable?
Aluminum combines low density with high strength, excellent corrosion resistance, and superior electrical conductivity (after copper and silver). It's the most abundant metal in Earth's crust and infinitely recyclable without quality loss. These properties make it essential for transportation (weight savings), packaging (beverages, food), construction, and increasingly, renewable energy applications. Production is energy-intensive, linking prices to electricity costs.
What drives aluminum prices?
Key price drivers include: (1) Energy costs (production is power-intensive); (2) China production and demand (60% of global output); (3) Transportation sector demand (lightweighting vehicles); (4) Packaging demand; (5) London Metal Exchange inventory levels; (6) Bauxite supply and refining capacity; (7) Environmental regulations; and (8) US Dollar strength. Aluminum is particularly sensitive to Chinese economic policy.
Is aluminum a good investment?
Aluminum offers exposure to industrial growth, vehicle lightweighting trends, and renewable energy infrastructure. Considerations include: supply-demand dynamics, China's production influence, energy cost leverage, and ESG trends favoring recycling. Investment vehicles include futures, ETFs, or producer stocks. Aluminum is less volatile than copper but still economically sensitive.
How is aluminum used in cars?
Automotive aluminum usage is growing for fuel efficiency and EV range: body panels and closures, engine blocks and cylinder heads, wheels and suspension components, heat exchangers and cooling systems, structural frames (particularly in premium and EVs), and battery enclosures in EVs. Average aluminum content per vehicle increased from 120 kg (2000) to 200+ kg today, with EVs using even more.
What is the aluminum recycling advantage?
Aluminum recycling requires only 5% of the energy needed for primary production, making it highly sustainable and cost-effective. It can be recycled infinitely without quality degradation. Currently, 75% of all aluminum ever produced is still in use. This creates a significant secondary supply source and positions aluminum favorably in the circular economy and ESG-focused portfolios.
How does energy cost affect aluminum prices?
Aluminum smelting is extremely energy-intensive, consuming 15,000-16,000 kWh per tonne. Energy represents 30-40% of production costs. This creates direct links between aluminum prices and electricity costs, renewable energy availability, and carbon pricing policies. Regions with cheap power (hydroelectric, natural gas) have competitive advantages. Energy transition and carbon costs are reshaping the global aluminum industry.