Bloomberg: Enough about rare earth metals! Aluminum is the problem of today

While the media is discussing geopolitical developments related to the extraction of rare earth metals, a crisis is beginning with an even more important metal — aluminum. Bloomberg writes about this.

"While most of the talk about critical minerals in the US is about rare earth metals, something much more important is happening," writes Bloomberg columnist Javier Blas in X.

"The total cost of aluminum in the United States has soared to record levels, as traders and steel mills demand huge premiums for physical products above prices on the London Stock Exchange (LME) due to Trump's duties," Javier Blas reports.

In a Bloomberg column, he notes that aluminum has neither the explosiveness of copper nor the geopolitical attractiveness of rare earth metals, but at the same time it is the metal of the current moment, since airplanes and iPhones, window frames and soda cans, electric cars and household appliances all depend on it.

"It is difficult to imagine further electrification without this grayish metal. With an annual consumption value of almost $300 billion, it is the largest of all non-ferrous metals. Only steel, black metal, is used more widely," continues Javier Blas.

In his opinion, the situation with aluminum is entering a decisive phase: either the world is slipping into a supply crisis, or it becomes even more dependent on China.

"The situation is alarming: aluminum is trading at a three-year high, about $ 2,900 per ton. Although the record is still far away, the current price is historically overestimated, being at the upper limit of the 1990-2025 price range by 5%," the observer writes.

He notes that the production of aluminum is an extremely energy—intensive process, so much so that the metal is often referred to as "solid electricity": "Smelters require as much electricity to produce a ton of aluminum as five German houses consume in a year."

In this situation, it is difficult for Western producers, especially in Europe, where the price of electricity exceeds the cost in China by several times, to compete with China. At the same time, Donald Trump's duties make aluminum an expensive pleasure for the United States.