Aluminum supply gap to widen to 2.7 million tons by 2024
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Update time : 2022-01-10 20:58:28
Commerzbank commodities analyst Daniel Briesemann said that more and more aluminum smelters might reduce their production before the spring due to surging energy prices in Europe and Asia, which hiked aluminum prices.
According to analysts at Bank of America, energy typically accounts for around 40% of aluminum smelters’ operating costs. The annual production of aluminum is approximately 68 million tons. China, the major aluminum producer in the world, cut its production last year, which resulted in a gap between the global aluminum supply and demand.
Bank of America forecasted that the supply gap will widen to 2.7 million tons by 2024, and aluminum prices will reach roughly US$3,500 per ton at that time.
