Booming copper, increasing costs seen pushing aluminum skyward
Nov 30, 2005 | 06:35 PM
| David Brooks
Aluminum rose on the London Metal Exchange Wednesday as the pull of booming copper prices and the push of increasing cost pressures combined to take the three-month price to $2,140 per tonne at the final kerb, up $19 from the previous day.
"The price is going through the roof. You have to give copper some credit, because that's driving it," one producer said.
But while fund buying is playing a large role, cost pressures also are forcing aluminum prices up, traders and producers said.
"The cost curve has shifted. Alumina is at $610 to $615 per tonne c.i.f. China right now. That's $1,200 (2 tonnes of alumina are used to make 1 tonne of aluminum). Then there's electricity, which is a minimum of $40 per (megawatt hour)-that's another $600," a trader said. "That's $1,800 for power and alumina."....
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