Aluminium prices reach 13-year high
The price of aluminium reached a 13-year high this week amid a global rise in energy prices.
The soaring energy prices worldwide is having massive effects on industries and is having huge knock-on effects to the supply chain.
Aluminium rose by as much as 2.8%, to $3,049 a ton, on the London Metal Exchange on Monday – the highest since July 2008.
A major cause of this is the energy-intensive nature of aluminium.
According to Mining Technology, each tonne of aluminium takes 14 megawatt-hours to produce, enough to run an average UK home for three years.
The cost of producing aluminium has risen significantly in line with the rising cost of energy prices.
This is likely to see a knock-on effect for products that rely on aluminium from beverage cans to smart phones and cars.
PepsiCo expects to raise its price next year due to the shortages of cans and bottles globally.
Chief Financial Officer Hugh Johnston told Reuters that PepsiCo had to “scramble” to overcome a shortage of cans.
Kraft Heinz also warned that people will need to get used to higher food prices.