Extreme aluminum market situation

Due to the pandemic and its effects, we have already faced a number of challenges this year, but unfortunately there are no signs of an improvement in the market situation. The prices of the products are constantly increasing due to the energy, delivery, manufacturer operating costs. In the case of semi-finished aluminum products, the strongest demand growth and widespread material shortages in the last ten years have also pushed up prices.

What factors led to the current situation?

The combined effect of several factors complicates the situation.

• Energy restrictions in China reduce the production of many raw materials, including aluminium and magnesium.

• Export duty to Russian aluminum products.

• There was a military coup in the great bauxite exporting Guinea.

• Transport difficulties present an obstacle.

• Protective duty on Chinese goods.

• Decreasing LME stocks, increasing metal premiums.

• Threefold energy costs since 2019.

 All of these factors individually have a strong impact on market processes, but the current situation can be described as extreme - compared to the usual processes of the last 2-3 decades. 

Our Eastern European region is taking the utmost care and expertise to bridge this period, and strives to deliver aluminium semi-finished products to its loyal partners in the usual way to ensure continuous and predictable operation.