To the relief of the construction industry and car makers, among others, the price of aluminium fell yesterday.
Aluminium prices fall
To the relief of the construction industry and car makers, among others, the price of aluminium fell yesterday after spiking to a record of US$3,327 (Dh12,220) a tonne on Monday. The lightweight metal, which is widely used in insulation and energy-efficient windows as well as fuel-efficient vehicles, rose in response to concern over the possibility that production at major smelters in China could be disrupted by a shortage of electricity. By midday yesterday in London, however, prices had fallen to $3,276 a tonne.
Analysts said the record price was unwarranted, as markets were holding large inventories and Chinese production had not yet been seriously affected. "Traders are getting a bit too excited about what is actually happening in the physical market," said Dan Smith, a metals analyst at Standard Chartered in London. Mr Smith said inventory levels stood at a four-year high of one million tonnes out of a global annual market of 40 million tonnes. He predicted prices would stabilise at $2,950 a tonne in three months.