Understanding How The Aluminum Price Per Kg Market Works


Although it may be difficult to imagine, only 150 years ago, aluminum was regarded as a very expensive form of metal and silver made from clay and till now, aluminium price per kg is currently the second most consumed metal overall, only being surpassed by steel. Hence, the market need for aluminum will keep rising at unstoppable rates in the years to come.

The material in fact is positioned to strengthen its leading hand as a primary resource due to recent innovations in the automotive sector, the rising urbanization of the world, and its new prospective uses as a copper substitute in the power Industry.

This article is poised to make you understand how the metal market works and the demand for expensive metals such as aluminum in today’s world. Keep reading!

History of Production

The sum of 200 tonnes of aluminum were produced between 1854 and 1890, which is equivalent to the weight of 100 F-150 pickup vehicles with all-aluminum bodywork. This is the same amount that the Ford Motor Company currently produces within 2 hours.

The production and use of aluminum quickly picked up pace and expanded from thereunto. The subsequent ten years, from 1890 to 1899, saw a 28 thousand tonnes increase in global aluminum production. It had multiplied by ten by 1930, reaching 270 thousand tonnes. Global aluminum output increased from 1 million tonnes per year from the mid 20th century to 10 million tonnes in 1973.

In the decades that followed, these patterns remained, and by 2014, production output topped 55 million tonnes. It is anticipated to reach a billion tonnes in 2026, with the increasing trend not appearing to slow down anytime soon.

The Industry expanded as a result of significant structural advancements such industrialisation, urban expansion, and technical advancements. Nowadays, economists consider high per capita consumption rates of aluminum to be one of the most telling signs of a healthy and developed economy.

Supply Chain and Production

The suppliers of raw aluminum together with its alloys make up the upstream part of the Industry. The downstream segment of the aluminum market comprises makers of its products and recyclers.

For the production at the upstream level, Bauxite must be mined, converted into alumina, and then transported to a smelter in order to make aluminum. The top production levels in the world are mostly found in the nations of Latin America, Southeast Asia, Africa, and Australia.

They also double as the largest bauxite reserves situated in the subtropical and tropical regions. These regions typically include alumina production facilities as well, making it possible to export this sophisticated value-added commodity.

Pricing and Trade

An aluminum scrap of sheet price per kg is roughly between $500 – $700 on the metal market around the world. The world’s production of aluminum increases each year due to the metal’s rising demand. The LME’s average price for the metal from 1989 to 2015 was $1,806 per tonne. In November 1993, when a tonne of aluminum cost $1,023, the price fell to an all-time low. But in July 2008, a record was set when the cost of a tonne rose to $3,271.


Generally, the aluminum price per kg varies from the standard LME price to a regional premium that is based on its availability in different market types, and a commodity markup based on quality produced. The article sheds more light on aluminum and its price.


Please enter your comment!
Please enter your name here