Canned drinks, smartphones and cars could cost more after the energy crisis sent the price of aluminium soaring to a 13-year high.
Industry figures have warned that costs faced by aluminium producers are rising so rapidly that they have little choice but to pass them on to companies further down the supply chain.
It means a host of goods – including everything from cans to tools, electronic gadgets and vehicles – become more expensive to make.
Making aluminium is particularly energy-intensive, leading some in the industry to dub it "solid electricity".
That has left producers particularly vulnerable to the recent surge in the price of electricity and gas .
Prices were already being affected by ongoing supply chain problems, as well as the sudden spike in demand from economies bouncing back from the Covid-19 pandemic.
On top of this, supplies are being squeezed after China – where more than half of the world's aluminium is produced – lifted caps on energy prices, raising costs for smelters and prompting some producers to scale back activity.
It has led the price of aluminium per metric tonne to this week break through the $3,000 mark for the first time since 2008, according to data from Bloomberg.
Investors are reportedly betting the figure could rocket further – potentially to more than $4,000.
The British Soft Drinks Association also sounded the alarm over 'tight' supplies yesterday, which it blamed on the huge fluctuations in demand seen during the pandemic.
The cost of other materials has also risen due to the energy crunch. Britain's biggest producer of newsprint is considering cutting output this winter following the surge in energy prices, Bloomberg reported yesterday [Tuesday].
Palm Paper, a subsidiary of Germany's Papierfabrik Palm GmbH, did not sufficiently hedge its gas purchases this year as the risk of Covid-19 lockdowns clouded production forecasts, sources were reported to have said. It might need to curb output at some plants or temporarily take others offline, they said.
Paper is among a slew of industries feeling the pain of the crisis. Last month, major fertiliser maker CF Industries halted operations at two UK plants, citing high gas prices. Chemical companies including Austria's Borealis and Norway's Yara International have also reduced output.
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