Aluminum prices are at their highest level in more than three years as supply disruptions tighten the market.
Aluminum rose as much as 0.5% to $2,629 U.S. a ton on the London Metal Exchange, near the $2,642 U.S. they hit on July 30, the highest level since April 2018. In Shanghai, the metal rose as much as 1.4% to 20,705 yuan a ton, the highest level since 2008.
Aluminum prices have surged 32% this year, second only to tin among the six major base metals, propelled by a global economic recovery that’s expected to fuel purchases of goods ranging from automobiles to toasters.
Prices for aluminum have also been rising on bets that China, the biggest producer, will curb supply to cut greenhouse gas emissions.
In the latest development, a major fire at a Jamaican aluminum refinery is expected to push the premium buyers pay for the metal to new highs as a potential shortage could further tighten the market.
Prices for other metals have been mixed, with copper flat and zinc edging lower. Metals are recovering from last week’s slump as concerns ease over the economic fallout from the Delta variant of COVID-19 and the prospects for additional stimulus in China.
