Analysis: Global aluminium shortage
Our customers are currently experiencing high prices and a low supply of aluminium. To explain this situation, we asked the Danish bank Jyske Bank to conduct an analysis of the global metal market.
The analysis shows that three main factors have caused the significant price increase of aluminium in the last year:
- Stimulus packages prompted by COVID-19
- Increased investments in green technologies
- China’s production and consumption of aluminium
Many countries, the US in particular, have adopted large stimulus packages to encourage private and public spending during the pandemic. This has led to increased construction activity and consumption of goods – the restrictions on traveling have only boosted this.
Furthermore, the pressure to invest in environmentally friendly technologies for the future has risen in recent years, and aluminium is an important ingredient in green technologies. Among other things, aluminium is used in large quantities for wind turbines and electric cars.
Finally, China produces and consumes around 58% of all aluminium in the world, making the country an important actor on the global market. However, it seems that China will be consuming more aluminium in the coming years to support green technologies, while also periodically limiting the production of aluminium to decrease carbon emissions.
You can see the daily price of aluminium here: Aluminium prices
The full analysis from Jyske Bank is available on our Danish site.