Global aluminium prices and premiums have been on a near-vertical uptrend, touching record highs along the way, with consumers of aluminium in various sectors finding ways to absorb and pass on the increasing costs.
Managing high raw material costs has become a key theme in quarterly earnings reports and in conference calls for manufacturing companies throughout the summer months of 2021.
Despite historically high prices and premiums for materials like aluminium, many companies are still finding a way to generate profits in the current bullish environment by passing down costs or using hedging tools to manage risk.
Triple-digit increases
The
aluminium three months seller London Metal Exchange Daily Official Monthly Average hit a ten-year high of $2,504.11 per tonne in July, up nearly 50% from the same time last year.
It is also up around 25% from the beginning of the year, spurred higher by strong global demand and dwindling supplies in LME sheds.
High freight costs as well as smelter shutdowns and tariffs have been key drivers of bullish sentiment in the sector.
Global aluminium premiums across the supply chain have...