Analysts expect aluminum prices to be $2,450/ton this year and $2,300/ton in 2022

Analysts said that rising energy costs and widespread production reduction by aluminum smelters are expected to maintain high aluminum prices next year. At the same time, the overall aluminum price is expected to be at $2,450 per ton this year and $2,300 per ton in 2022.

  In the third quarter of this year, due to the “electricity shortage” in China, aluminum prices once stood at a thirteen-year high of $3,221 per ton.

  In addition to the production reduction policy implemented by Chinese aluminum smelters in an effort to reduce the pressure on electricity consumption, high energy costs are forcing producers to cut production globally. According to statistics, energy costs account for 40% of aluminum production costs.

  The analysis predicts that aluminum prices will decline slightly in 2022 mainly due to a slowdown in the next demand rise after a strong demand recovery in 2021, but demand fundamentals and supply-side factors will still be supportive of aluminum prices in 2022.

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