The Strategist

Aluminum price hits its highest since 2008

02/09/2022 - 09:06

The price of aluminum in trading on the London Metal Exchange (LME) rose by 3.3% to 3.236 thousand dollars per ton, which is the highest since 2008, according to Bloomberg.

Thus, metal prices have surpassed their October peak and are now closer to their historic high, which, as the agency points out, is $3.38 per ton.

The rise in the cost of commodities such as industrial metals, gas and oil in the past few months is observed in connection with the growing level of their consumption as economic activity is restored after the pandemic, with a shortage of stocks.

According to analysts at Goldman Sachs Group, the price of aluminum is expected to surge as shortages of the metal increase. Experts predict that the world's visible aluminum reserves will be exhausted by 2023.

"We believe the aluminum market will face a spike in prices. The key attribute of the deficit (of metal - ed.) is that it can increase, and it causes additional price volatility throughout the economy," the agency quotes analysts from Goldman Sachs Group.