About Aluminium
Aluminium is light, strong and recyclable, used in transport, packaging, construction and power lines. Smelting takes huge amounts of electricity, so energy prices are a core part of its cost structure.
What moves the aluminium price
- Chinese smelter output and government capacity caps.
- Electricity and energy costs for smelters, especially in Europe.
- Demand from autos, packaging and construction.
- Trade tariffs and regional premiums.
Energy in metal form
Smelting aluminium uses enormous amounts of electricity, so power prices are central to its cost. When energy costs spike, high-cost smelters curtail output, as happened in Europe in 2021 and 2022. China's government caps total smelting capacity, which limits supply growth from the largest producer. Raw-material prices for alumina and bauxite, often from Guinea and Australia, also feed into costs.
Premiums and trade policy
The LME price is only part of what buyers pay. Physical consumers also pay a regional premium that reflects freight, financing and tariffs. US tariffs on imported aluminium have at times pushed the Midwest premium to record levels, so the delivered US price can rise even if the LME price is flat. Demand comes from transport, packaging, construction, power lines and solar-panel frames.
Contract specifications
| Global benchmark | LME Aluminium, 25 tonnes, US dollars per tonne |
|---|---|
| US futures | COMEX Aluminum (ALI), 25 metric tons |
| Regional premiums | US Midwest, Rotterdam and Japan premiums are added to the LME price for physical metal |
| Main producers | China (over half of world output), India, Russia, Canada, the Middle East |
Specifications as published by the exchange; they can change, so confirm on the exchange website before trading.
Trading hours
LME metals trade electronically on LMEselect roughly 01:00 to 19:00 London time, with open-outcry Ring sessions around midday London time. The 3-month contract is the usual benchmark.
Contract basics
LME primary aluminium trades in 25-tonne lots priced in US dollars per tonne.
Quote unit
USD per tonne. Hours and specifications can change; always confirm on the exchange's website, especially around holidays.
Aluminium FAQ
What moves the price of aluminium?
Chinese smelter output and government capacity caps. Electricity and energy costs for smelters, especially in Europe. Demand from autos, packaging and construction. Trade tariffs and regional premiums.
When does aluminium trade?
LME metals trade electronically on LMEselect roughly 01:00 to 19:00 London time, with open-outcry Ring sessions around midday London time. The 3-month contract is the usual benchmark.
What is the standard aluminium contract?
LME primary aluminium trades in 25-tonne lots priced in US dollars per tonne.
Why is aluminium sensitive to energy prices?
Electrolytic smelting needs roughly 13 to 15 megawatt-hours of electricity per tonne, so power is one of the largest production costs.
Is it aluminium or aluminum?
Both: aluminium is the international spelling used by the LME, while aluminum is the US spelling used by COMEX.