LME Week: Aluminum sector sees power costs key to riding electrification trends
As industry leaders gather in London for one of the world’s largest metals events, S&P Global Energy Platts presents the LME Week thought leadership series, examining the forces redefining global metals markets and shaping the outlook for 2027 and beyond. This feature examines how producers are responding to rising aluminum demand through capacity expansions and ...
The aluminum sector is poised for growth as producers expand capacity and invest in recycling amid rising demand and electrification trends. Producers remain cautious, however, due to volatility in energy costs, trade regulations, and geopolitical factors. According to McKinsey & Company, global aluminum demand is expected to grow at a compound annual rate of 2% from 2025 to 2035, driven by data centers, grid expansion, mobility, buildings, and infrastructure.
However, the market is highly fragmented and sensitive to energy cost volatility, carbon regulation, geopolitical tensions, and tariffs. In 2025, a steep tariff increase triggered aluminum price spikes, and the ongoing conflict in the Middle East further disrupted production. The global primary aluminum production fell by 1% in the first nine months of 2026, while China and Indonesia boosted exports, and Russia increased its primary production.
The London Metal Exchange prices peaked at $3,753/mt in September 2026, before falling to $3,080/mt in October. StoneX expects LME prices to remain above $3,000/mt through 2026. Capacity rollouts are underway, with North America aiming for 28% self-sufficiency and Europe for 26% in refined aluminum.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
