Aluminum Supply Tightens

Benzinga

Analysts warn aluminum supply is tightening as high power costs, tariffs, and structural limits squeeze global production. With U.S. smelters dwindling and AI-driven electricity demand rising, prices could push above $3,000 per ton next year as deficits build.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:03The aluminum market faces tightening supply as power costs, tariffs, and structural constraints

00:08pressure global production, according to Benzinga.

00:11Bank of America

00:13Global head of metals research Michael Widmer said U.S. aluminum smelters have fallen from 20 in 1998 to 5.

00:20He said electricity costs are now the primary barrier to new capacity

00:24as data centers and AI compete for power at higher prices.

00:27Widmer said aluminum prices could rise above $3,000 per ton next year,

00:32though the outlook remains less bullish than copper.

00:35China's production cap, rising clean tech demand, and risks to Europe's supply are contributing to expected global deficits.

00:44ING Research forecast aluminum prices near $2,900 per ton in 2026.

00:49For all things money, visit Benzinga.com.

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