Aluminum

1. Nickname: Solid Electricity

Aluminum production involves the electrolysis of alumina, a process that consumes massive amounts of electricity. * Therefore, Aluminum prices are essentially a proxy for global energy costs. If electricity prices surge, aluminum production becomes expensive, pushing up prices.

2. Key Uses

• Transportation: Crucial for aerospace and automotive industries due to its high strength-to-weight ratio (Lightweighting).
• Packaging: Beverage cans and foils.
• Construction: Window frames and siding.

3. Market Drivers

1. Energy Prices: Smelters often shut down during energy crises due to high operating costs, tightening supply.
2. Geopolitics: Russia (Rusal) is a major global supplier. Sanctions or trade restrictions can cause price spikes.
3. Sustainability: It is infinitely recyclable and essential for reducing vehicle weight to improve fuel efficiency/range in EVs.