Aluminium Ingot Prices Surge in Germany and US Amid Supply Chain Issues

Aluminium Ingot prices saw significant increases in late October, with notable price hikes reported in Germany and the United States. These increases have been driven by supply chain disruptions, rising raw material costs, and growing operational expenses.

In Germany, Aluminium Ingot prices rose by over 2% after Emirates Global Aluminium (EGA) announced a suspension of exports from Guinea, a key supplier of bauxite, the primary raw material for aluminium production. This disruption has led to heightened buying activity as manufacturers scramble to secure their supply chains, further driving prices up. Additionally, rising electricity costs, which are a major component of aluminium production, are squeezing profit margins across the sector. Public sector workers are also demanding an 8% wage increase, which could further increase production costs. Despite these challenges, Norsk Hydro, a major European aluminium and renewable energy company, reported strong financial results for the third quarter, benefiting from higher aluminium and alumina prices.

Meanwhile, in the United States, Aluminium Ingot prices increased by 1.5%, largely due to record-high alumina prices that have significantly raised production costs. While the Biden administration's Inflation Reduction Act is providing policy support for domestic critical mineral production, manufacturers are still feeling the financial impact. Century Aluminum and other major industry players have backed these government initiatives. Alcoa, another prominent US aluminium producer, reported a fourfold increase in third-quarter net income, taking advantage of rising alumina prices while keeping raw material costs in check. However, the industry's supply chain faced a setback with the closure of the General Aluminum facility in Conneaut, which ceased operations after losing significant customer orders.

As the market enters a period of increased activity, Aluminium Ingot prices are expected to continue their upward trend. Factors like heightened demand during peak consumption periods and the current scarcity of raw materials are projected to sustain the price momentum. ChemAnalyst anticipates sustained growth for the Aluminium Ingot sector, with continued price increases expected in the coming weeks.