For aluminium market participants globally, the global energy shortage is one of the many shortages producers of the light metal are facing.
Market participants say the energy crunch, caused by a lack of incentive to produce additional supply when energy prices hit lows in 2020, will particularly be felt by producers who have large exposures to the spot energy markets, although many say that most smelters are covered by long-term contracts."Natural gas prices are also rallying across the world and aluminum smelters exposed to spot power prices will see much higher energy costs, unless they have hedged or in some way mitigated their exposure," said Anna Stablum, London Metal Exchange desk analyst at Marex, in a morning note on Monday. "Electricity accounts...