Power fuels aluminium’s price surge to record in Europe

Costs of aluminium for European consumers are scaling record highs due to soaring energy costs and production cuts, which have exacerbated deficits of the metal used in the power, construction and packaging industries.

Consumers buying aluminium on the physical market usually pay the benchmark price on the London Metal Exchange — around $2,950 a tonne on Tuesday — plus a physical market premium that typically covers transport costs and taxes.

But shortages mean traders and producers with inventory are able to command a significantly larger premium, which in Europe has shot up nearly 30% to a record $428.75 a tonne since the start of 2022.