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| Aluminum Prices |
Global Supply Restrictions Drive Aluminum Prices Higher
Aluminum prices exceeded $3,000 per metric ton in the U.S. and Europe due to reduced production and low inventories.
However, government caps on Chinese smelting and high European electricity costs sharply constrained supply, lifting global prices.
Meanwhile, LME warehouse data for November 2025 showed more than 16,500 tons of aluminum exited, signaling tightening inventories.
Strong Construction and Renewable Demand Supports Market
Aluminum demand remains robust from construction and renewable sectors, underpinning prices despite production limitations.
Novelis’ Oswego, New York facility resuming full melting capacity will influence recycled aluminum demand significantly.
As a result, U.S. recyclers report heightened trading volatility, reflecting supply-demand imbalance and market uncertainty in 2025.
Aluminum trading on Comex hit $3,050.75 per ton on Jan. 5, marking a 1.6% increase from previous trades.
Similarly, LME’s three-month closing price reached $3,015.50 per ton, indicating parallel bullish trends across major exchanges.
Investors and scrap traders should monitor energy costs and regulatory changes, as these will directly impact aluminum availability.
ScrapInsight Commentary
Supply restrictions in China and Europe tightened aluminum inventories, supporting a bullish market trajectory.
Recycled aluminum demand will rise, particularly if U.S. melting capacities stabilize.
Investors should anticipate continued price volatility and strategic opportunities in circular economy aluminum flows.
