Why Biggest Metals Rally of the Year May Have Further to Run
- Alumina prices are up 56% since August amid China shutdowns
- Rising input costs for aluminum could drive prices even higher
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In a stellar year for base metals, aluminum has led the pack. Now, producers say surging raw material costs could drive prices even higher.
Alumina, the raw material used to make aluminum, has jumped 56 percent since August after China shut down some production, triggering a wave of buying by traders and aluminum smelters. The rally is putting a strain on metal producers in China, where alumina accounts for 40 percent of the cost of making aluminum.