Aluminum Sheet Prices Rise on Energy Cost Concerns and Supply Tightness

Aluminum sheet prices have climbed steadily over the past two weeks, driven by rising energy costs and supply constraints at major smelting facilities.

The energy-intensive nature of aluminum production makes the metal particularly sensitive to electricity price fluctuations. Recent increases in power costs across several Chinese provinces have prompted some smelters to reduce output, tightening supply in the spot market.

Aluminum sheet buyers report longer lead times and reduced availability from preferred suppliers. “We’re having to plan further ahead and accept higher prices to secure the volumes we need,” said a procurement manager at a major appliance manufacturer.

The supply situation is compounded by strong demand from the automotive and electronics sectors, both of which are increasing their use of aluminum for lightweighting and thermal management applications. Electric vehicle production, in particular, continues to drive incremental aluminum consumption.

Market analysts expect prices to remain elevated until energy costs stabilize or new smelting capacity comes online. Several expansion projects are underway but most are not expected to contribute meaningful supply until next year.