Aluminum Reaches Record High Price

Aluminum prices in the United States and Europe will remain high for some time due to Russia’s mining tax, however efforts to drive prices further up will likely meet headwinds from traders selling their equities, according to experts, Reuters reports.

From August to December, Russia placed a 15% tax on aluminum exports, with a minimum of $254 per ton. Rusal, Russia’s sole aluminum producer, contributed for 6% of world supply the year before, which were estimated at 65 million tons.

Consumers who buy aluminum on the spot physical market pay the benchmark aluminum market value on the London Metal Exchange (LME) plus a surcharge to cover shipping and handling fees, as well as taxes.

Aluminum prices, which are widely utilized in the transportation and packaging industries, were already rising owing to rising demand, dwindling supply, and rising freight costs, recently reaching $2,642 per ton – a record price since April 2018, when the U.S. slapped sanctions on Rusal.