Aluminum soared to a 13-year record-high in London as soaring demand and a bath of smelter closures from China to Europe heightened the risks of shortages of industrial metal.
- Prices grew nearly 3.3% to $3,236 per ton on the London Metal Exchange, topping a peak in October to the highest level since 2008.
- Key raw materials ranging from nickel to natural gas and crude oil have soared in recent months as consumption expanded sharply with the world recovering from the pandemic.
- Aluminum is the best performer on the LME in 2022, and the next target for positive investors has been attracted into the rapidly tightening market.
- With smelters in Europe struggling with an energy crisis and Chinese supply at risk from a persistent Covid outbreak, buyers are withdrawing rapidly from stockpiles and pushing them to severely low levels.
Goldman Sachs Group Inc anticipates the industry is on target to deplete global visible inventories by 2023.