Aluminium Prices at their Highest Since 2008
As the name of our company suggests, BS Stainless specialises in the supply of a comprehensive range of stainless steel materials and products. In addition, we also supply aluminium products and materials to a number of key customers around the world.
There is growing concern about the current prices for aluminium which, on Tuesday 8th February 2022, reached a peak not seen since 2008. The prices have skyrocketed due to a number of factors, including concern from investors over restricted supply and decreasing inventories.
On the LME (London Metal Exchange) on 8th February, benchmark aluminium was up by 1.6% at around £2,351 per tonne at the end of the day, after hitting as much as £2,390 earlier in the day. The stocks of aluminium in LME-registered warehouses have dropped to 767,700 tonnes, the lowest level since 2007.
Three-month aluminium on the London Metal Exchange hit a record $3,525 a tonne in high volumes, before falling back to $3,385.
Aluminium, widely used in various sectors including transport, construction and packaging, gained 42% in 2021 and has already shot up by as much as 14% already this year.
China, a country that produces in excess of 50% of the global supply of aluminium, has drastically reduced its output in a bid to reduce pollution caused by the use of smelters, which are powered by electricity generated from burning coal. The reduction has been driven in part by wanting to improve air quality in the run-up to and during the Beijing Winter Olympics.
Supply fears have been compounded by a lockdown due to a COVID-19 outbreak in Baise, an aluminium-producing city in China. The city's industry association said that output remained stable though disruptions in transportation were causing problems.
Aluminium prices have surged higher after Western nations unveiled more sanctions on major producer Russia in response to its invasion of Ukraine, with more worries about supplies.
In Slovakia, aluminium smelting giant Slovalco has cut output to 60% of capacity in response to increasing power costs and lower emission allowances.
BS Stainless supplies a wide range of aluminium products, including coil and sheet with our factory-bonded Surlyn moisture barrier. Available in plain and stucco embossed formats, these products are widely used for insulation and metal cladding/jacketing, which in turn is secured with aluminium banding.
Underneath cladding, aluminium foil is often used; this foil is also in high demand from the heating and ventilation industries. Made from 99% pure aluminium, the foil is comparable to standard foil used for culinary purposes but is much wider and stronger.
BS Stainless will continue to supply aluminium materials and products to our customers at the most competitive price throughout these turbulent times. For more information about aluminium from BS Stainless, please browse our website.