Today’s gold prices surged as the market opened, with gold ornaments selling at 28,850 baht per baht-weight! (October 2021)
And did you know that the price of other metals around us fluctuates just like the price of gold, including the price of aluminium? Why does the price of aluminium change all the time? Aluminium Loop invites everyone to find the answer.
First, let’s acknowledge that aluminium is used in a variety of industries. Looking at the various items around us, we believe many contain aluminium, such as beverage cans, automotive parts, window frames, electrical appliances, and kitchenware. This makes aluminium consistently in demand by the production sector. Its properties of being strong yet lightweight, good at conducting heat and cold, and importantly, being endlessly recyclable, make it highly sought after.
However, the price depends on market demand and the situation in each related country as well. Therefore, the price of aluminium fluctuates based on demand and supply, and various situations that have an impact.
We can check the price of aluminium based on the LME. So, what is the LME?
LME, or the London Metal Exchange, is the world’s largest market for metal trading (excluding steel) and is the most recognized in the UK. It offers futures contracts and options for metals and commodities such as aluminium, gold, copper, silver, cobalt, and zinc.
Comparing the always fluctuating price of gold, aluminium prices also vary, but they have increased significantly from previous years. Looking back at the prices since the beginning of 2021 until now, aluminium had a low of $1,953.80 per ton and a high of $3,228.75 per ton, with the current price (as of October 26, 2021) at $2,831 per ton.
The reason for the current high prices of aluminium and the trend that is expected to continue rising in the next 2 years is because countries like the United States and others have provided stimulus payments to citizens during the Covid-19 situation, which increased purchasing power, especially for electrical appliances. Brands had to increase production to meet demand, along with the cost of transportation using containers and ships in some countries also increased, due to more online ordering during Covid-19. Furthermore, the closure of raw material factories in China due to environmental standards has led China to buy more raw materials from the global market, causing global raw material prices to highly increase.
Moreover, the current trend of environmental conservation and the use of aluminium is very strong.
“The world is moving towards the goal of creating sustainability SDGs, which affects the long-term demand for aluminium. Many countries are turning to solar energy, which uses aluminium to make solar cells, so the amount of aluminium used in the future will increase tenfold in 10 years, from 1 million tons in 2020 to 4 million tons in 2030” – Mr. Teerapun Pimtong, Chairman of the Aluminium Industry Club, The Federation of Thai Industries (FTI), Prachachat, June 21.
You can see that aluminium is a very valuable raw material, more than many might expect. Aluminium prices are constantly changing and are likely to keep increasing in the future.
Knowing this, we want everyone to recognize the value of aluminium. Start with something close to us like aluminium drink cans. Just by managing aluminium cans properly after consumption, by cleaning them, drying them upside down, and crushing them before recycling, we can help ensure a continuous cycle of recyclable aluminium material. Or if you sell them, you’ll definitely get a higher price than other packaging materials.
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