The price of aluminium has reached an all-time high.

 

Well, I'm looking at metals as a sector, and specifically at aluminium prices, which have reached all-time highs in the overnight markets.

 

There was an all-time high in aluminium in 2008, when it was at 33.80 per tone, but last night in the New York session, we had 3420 a tone. Of course, there is some profit taking after hitting those all-time highs in the markets here, but aluminium is one commodity that has outperformed.


There are fears of escalation and sanctions on Russia, and we have seen a barrage of that come in yesterday, whether it has been from Germany, the United States, or the United Kingdom, and Russia produces nearly six percent of the world's aluminium, and the markets are also dipping into history last time.

 

We saw sanctions on rasal in 2018, and at the time, aluminium prices had risen by 35 percent in two days, so even if there's a whiff or a hint of that, aluminium prices will rise, and that's one part of it. The physical premium in the United States and Europe is at record highs right now, so if you want aluminium right now, you have to pay a huge premium for it.

 

Well, last year we saw nearly 24 42 gains, and this year we are up by nearly 24 as well. There is also talk of a big deficit that the markets are working with for this year, so global inventories have continued to decline as well. Last year at the same time, you were standing at 2 million tonnes, and this time around it's just about 8.35 lakh tones of aluminium availability in the global markets, so everywhere you look there are very bullish queues coming in for aluminium.