Why are aluminum prices so low?

“Unprecedented lockdowns in an effort to control the fast-spreading COVID-19 pandemic have acutely hampered the global economy, in turn severely hurting base metal demand and sending aluminium prices crumbling to an over four-year low in early April,” analysts at FocusEconomics said in an April report.

Why does aluminum cost so much?

Beyond the recent hike, however, aluminum prices have mostly been rising all year. The greening of the economy has a lot to do with that. Aluminum doesn’t corrode easily; it conducts electricity well and it’s lightweight. That’s why there’s a huge demand for it from automakers that want lighter, fuel-efficient cars.

Why is aluminium cheaper than steel?

Aluminum vs Steel Cost The price of steel and aluminum is continually fluctuating based on global supply and demand, fuel costs and the price and availability of iron and bauxite ore; however steel is generally cheaper (per pound) than aluminum (see galvanized vs stainless for more info on steel).

Why is aluminum more expensive than iron?

Aluminium is more reactive than carbon so it must be extracted from its compounds using electrolysis . Even though aluminium is more abundant than iron in the Earth’s crust , aluminium is more expensive than iron. This is mainly because of the large amounts of electrical energy used in the extraction process.

Are aluminum prices increasing?

U.S. Midwest delivered primary aluminum, as assessed by S&P Global Platts, is at an all-time high of 34.75 cents a pound, according to data provided by S&P Global Platts on Tuesday. The price is 20.05 cents a pound higher than in January, representing a more than 136\% climb from the beginning of the year.

What affects the price of aluminum?

The price of aluminum is strongly dependent on the price and availability of electricity. The U.S. Aluminum Trade Groups estimate that the cost of electricity accounts for 30\% of the total price of aluminum. In China, electricity consumption is closer to 45\% of the price of aluminum.

Why is aluminium more expensive than iron?

What are the benefits of aluminium?

Advantages of Aluminium

• Aluminium is an extremely versatile metal with a number of advantages, it is recognised for being both lightweight and flexible.
• Light Weight.
• Corrosion Resistance.
• Electrical and Thermal Conductivity.
• Reflectivity and Ductility.
• Odourless and Impermeable.
• Recyclability.
• See also: Uses of Aluminium.

Why is Aluminium more expensive than iron?

When comparing the prices, Aluminium is more expensive than Iron. This is because extraction of Aluminium from its ore is quite expensive than extraction of Iron from its ore. However, Aluminium is the most abundant metal available in the earth. Aluminium is a better conductor of electricity than Iron.

Is aluminum cheap or expensive?

In raw materials costs, aluminium is about three times more expensive than steel, while in terms of conversion costs it is about twice as expensive, MIT said. And in assembly costs, aluminium was 20-30\% more expensive than steel.