Relief for Aluminum on Relaxed Demand

Aluminum Futures – LME

Like copper, aluminum is a popular conductor used in various types of specialty wire & cable. For the savvy electrical distributor, the option of quoting a spec comprised of aluminum wire can provide valuable benefits that can help win more bids.

As is the case with most commodities recently, aluminum prices have been both elevated and volatile. Aluminum futures bottomed below $3,300 per tonne on the London Metals Exchange (LME) last week. This represents a decreased level not seen since early March, as relatively weak demand in China and Japan overshadowed worries of supply disruptions from Russia.

Coronavirus-induced restrictions in top producer China (particularly in Shanghai), disrupted Aluminum-fueled industries such as shipping, construction, and manufacturing. The impact from these industrial declines has helped curtail demand for the metal. On top of that, China recently ramped up aluminum exports, becoming a net exporter for the first time since 2019. This is all happening as the world scrambles to replace Russia’s ~6% global market share.

Also contributing to the aluminum pricing decrease is a drop in Japanese aluminum orders for April through June. This decrease in shipments is the latest sign of weakening demand in the world’s four biggest economies. On the flip side, risks of further supply shortages amid the heightened Russia-Ukraine war are contributing to keeping a floor under prices.

DWC Stocks Aluminum Wire

In addition to our outstanding selection of copper products, DWC stocks a variety of aluminum products including Mobile Home Feeder (MHF), ACSR, XHHW, SER, Service Drop, URD, and more. With inventory strategically located in our nationwide network of distribution centers, our outstanding logistics teams can cut orders to specific lengths for convenience, cost savings, and customization. Despite a challenging supply chain environment due to global business conditions, DWC is well-stocked with aluminum products and ready to help our electrical distribution partners serve their customers.

DWC offers an extensive selection of wire & cable products, including industrial, residential, and commercial. Get a quote today or contact an Account Manager at 888.439.2947 with any questions regarding specialty wire & cable