Aluminum Prices Per Pound



Aluminum is one of the most abundant metals on Earth and is used in a wide range of applications, from beverage cans to aircraft. The price of aluminum fluctuates based on various factors, including demand, supply, geopolitical events, and economic indicators. This article will delve into the factors that influence the price of aluminum and provide a snapshot of its historical and current pricing.

Image: Aluminum

Historical Context

Historically, the price of aluminum has seen significant fluctuations. For instance:

  • 1980s: Aluminum prices were relatively high due to increased demand in the automotive and aerospace industries.
  • 2008: Prices peaked at around $1.50 per pound, driven by the global economic boom.
  • 2009: The global financial crisis led to a sharp drop in prices, falling below $0.70 per pound.
  • 2010s: Prices generally hovered between $0.70 and $1.20 per pound, with occasional spikes and drops.

How is Aluminum Sourced?

Even though aluminum is the third most abundant element in the Earth’s crust, it doesn’t exist in its pure form naturally. Instead, it’s found combined with other elements, primarily in the form of bauxite ore. The process of sourcing aluminum involves several steps:

Video: From Bauxite to Alumina to Aluminum BY Malvern Panalytical

1. Mining Bauxite:

Bauxite is the primary source of aluminum. It is typically extracted from open-pit mines, which are large excavations made in the surface of the Earth. Major bauxite-producing countries include Australia, China, Brazil, Guinea, and India.

2. Refining Bauxite to Alumina:

Once bauxite is extracted, it undergoes a refining process to produce alumina (aluminum oxide – Al₂O₃). The most common method used is the Bayer Process:

  • Crushing and Grinding: The bauxite is first crushed and then ground into a fine powder.
  • Digestion: The ground bauxite is mixed with a hot, concentrated solution of sodium hydroxide (NaOH). This results in a slurry.
  • Separation: The bauxite residue settles to the bottom, while the alumina solution (known as “pregnant liquor”) remains on top. The residue, often referred to as “red mud,” is removed.
  • Precipitation: Aluminum hydroxide is precipitated out of the pregnant liquor by cooling and seeding the solution.
  • Calcination: The aluminum hydroxide is then heated in rotary kilns or fluidized bed calciners to produce anhydrous alumina.

3. Electrolytic Reduction to Produce Aluminum:

The conversion of alumina to aluminum metal is achieved through an electrolytic process in a cell known as the Hall-Héroult cell.

  • Electrolysis: Alumina is dissolved in molten cryolite (Na₃AlF₆) inside an electrolytic cell. A direct current is passed through the solution, causing the aluminum ions to migrate to the cathode (bottom of the cell) where they are reduced to aluminum metal. Oxygen is released at the anode (made of carbon) and reacts with it to produce carbon dioxide.
  • Collection: The molten aluminum sinks to the bottom of the cell and is periodically siphoned off.

4. Casting:

The molten aluminum is then cast into ingots, billets, or other shapes depending on its intended use. It can be rolled into sheets, extruded into various profiles, or further processed as needed.


It’s worth noting that aluminum is 100% recyclable without any loss of its natural properties. A significant portion of aluminum production comes from recycled scrap, reducing the need for bauxite mining and providing a more environmentally friendly source of the metal. Recycling aluminum requires only 5% of the energy compared to producing aluminum from bauxite.

Factors Influencing Aluminum Prices

  1. Supply and Demand: The most fundamental economic principle that drives the price of any commodity, including aluminum, is supply and demand. When demand is high and supply is limited, prices tend to rise. Conversely, when supply exceeds demand, prices tend to fall.
  2. Production Costs: The cost of producing aluminum, which includes bauxite mining, refining, and smelting, can influence its price. Higher energy costs, for instance, can lead to increased production costs and subsequently higher aluminum prices.
  3. Global Economic Health: The health of the global economy can influence aluminum demand. In booming economies, industries like construction, automotive, and consumer goods often see growth, leading to increased demand for aluminum.
  4. Geopolitical Events: Trade wars, tariffs, and sanctions can impact the flow of aluminum between countries, influencing its global price.
  5. Stockpiles: Large stockpiles of aluminum can act as a buffer against supply disruptions, which can stabilize or depress prices.
  6. Currency Strength: Aluminum prices are often denominated in U.S. dollars. Therefore, the strength or weakness of the dollar can influence the price of aluminum for buyers using other currencies.

Current Pricing

Aluminum prices are currently hovering around $1.00 to $1.20 per pound. However, it’s essential to note that these prices can change rapidly. For the most current pricing, one should refer to commodities market data or industry-specific publications.

Current Prices of Aluminum Per Pound Across US Cities

CityAluminum Price Per Pound (USD)
New York$1.15
Los Angeles$1.12
San Antonio$1.13
San Diego$1.12
San Jose$1.14
Fort Worth$1.13
San Francisco$1.14
Washington, D.C.$1.15
El Paso$1.12
Oklahoma City$1.13
Las Vegas$1.12
Aluminum Pricing Per Pound in the US

Why is Aluminum Expensive?

Aluminum is a versatile metal known for its lightweight, strength, conductivity, and resistance to corrosion. Due to these properties, it is used in a wide range of manufacturing industries, hence it’s a very important metal for production. Here are some of the primary industries that use aluminum extensively:

  1. Transportation:
    • Automotive: Aluminum is used in cars and trucks to reduce weight and improve fuel efficiency. It’s used in body panels, engine blocks, wheels, and other components.
    • Aerospace: Aircraft manufacturers use aluminum alloys for parts like wings, fuselages, and other structural components due to its strength-to-weight ratio.
    • Rail: Trains and subway cars often use aluminum for similar weight-saving reasons.
    • Marine: Aluminum is used in boat and ship construction, especially for small boats, because of its resistance to corrosion from seawater.
  2. Construction:
    • Aluminum is used in window frames, doors, roofing, and curtain walling. Its resistance to corrosion and lightweight nature makes it ideal for building applications.
  3. Packaging:
    • Aluminum is extensively used in beverage cans, foil wrappings, bottle caps, and other packaging materials because of its ability to resist corrosion and its excellent barrier properties.
  4. Electrical:
    • Due to its excellent conductivity, aluminum is used in a wide range of electrical applications, including wiring and electrical components.
  5. Consumer Electronics:
    • Many electronic devices, including smartphones, tablets, laptops, and televisions, use aluminum casings or components due to its lightweight and aesthetic appeal.
  6. Kitchen Utensils:
    • Aluminum is used in pots, pans, and other kitchen utensils because of its excellent thermal conductivity.
  7. Machinery and Equipment:
    • Aluminum is used in various machinery and equipment for its lightweight and strength.
  8. Sports Equipment:
    • Bicycles, golf clubs, baseball bats, and other sports equipment often use aluminum or aluminum alloys for their strength and lightweight.
  9. Energy:
    • Aluminum is used in solar panels and wind turbine components. It’s also used in high-voltage power lines due to its conductivity.
  10. Defense:
  • Military vehicles, equipment, and some firearms use aluminum for its strength and lightweight.

These are just a few examples, and the list is by no means exhaustive. The versatility of aluminum means that its applications are vast and varied across numerous industries.


The price of aluminum per pound is influenced by a myriad of factors, ranging from basic supply and demand principles to global geopolitical events. While historical data can provide some context, the dynamic nature of global markets means that prices can change rapidly. Those interested in the current price of aluminum should consult real-time commodities market data or industry-specific sources.

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