The aluminum deficit deepens further

This year, the world consumption of aluminum will be higher than the world production by about 806 thousand tons, which exceeds the previous estimates by almost 217 thousand tons. Analysts say most of all base metals currently have a healthy supply and demand balance compared to other commodities. However, some of the base metals may face supply constraints within three years. A similar situation in the future may affect most base metals.

Thus, aluminum is a prominent representative of the base metals, which is used everywhere from ships to liquid containers, has increased in price by about 7.4 percent this year on the London Metal Exchange. Stock turnover on the exchange fell 15 percent to 4.6 million tonnes over the summer. This is the first time in seven years, and it looks like aluminum will continue to face declines in supplies this year.

Analysts also say that the latest changes are reflected in increased demand, which will drive up aluminum prices. In addition, traditionally, the peak period of demand for base metals on the market is in September and October.

The fact that more and more car companies are using aluminum for their latest vehicle lineup, as well as the increasing use of this metal in the production of LNG vessels, will increase the chances of further increases in the price of aluminum.