Tuesday saw aluminum prices hit their highest levels in a decade amid growing concerns about shortages in the world’s biggest producer and consumer, China, reports the Financial Times. Beijing, the world’s largest commodities buyer, has tried to quell rising prices by releasing stockpiles of metals to the market while warning against market speculation.
The price of the metal, which is used in cans, cars and construction, has risen by 50% over the past year, reaching a record high of $2,727 a tonne on the London Metal Exchange on Tuesday.
Price rises have also been fueled by production cutbacks in China, where there is increasing scrutiny over highly polluting industries as it looks to meet its climate goals.
Commodities including tin and copper have all hit record highs this year due to resurgent demand and supply chain bottlenecks due to the pandemic, which has prevented many mines and smelters from working at full capacity.