What's Happening?
Aluminium prices have reached multi-year highs in the fourth quarter of 2025, driven by US-China trade tensions and supply constraints. According to the Department of Industry, Science and Resources (DISR), the London Metal Exchange reported a 7.3% increase in aluminium prices, averaging US$2,618 per tonne. As of January 2026, prices have spiked to US$3,185 per tonne. The global shift towards clean energy is expected to further boost aluminium demand, essential for electric vehicles and renewable energy infrastructure.
Why It's Important?
The rising aluminium prices highlight the metal's critical role in the transition to clean energy, impacting industries such as transportation and construction. As aluminium is a key component in electric vehicles and renewable
energy systems, its price fluctuations can influence the cost and pace of green technology adoption. The ongoing trade tensions between the U.S. and China add complexity to the supply chain, potentially affecting global market stability and economic relations.
What's Next?
With the forecasted increase in aluminium prices, industries reliant on the metal may face higher production costs, potentially leading to increased prices for consumers. The demand for aluminium is likely to grow as the global economy continues to prioritize sustainable energy solutions. Monitoring trade policies and their impact on supply chains will be crucial for businesses and policymakers.
