In the last several years, the steel and sheet metal industry has seen everything from record highs to significant lows regarding aluminum prices. For several reasons, supply chain issues, chief among them, aluminum prices experienced record highs in 2021 and 2022. However, as the world returned to normal after the pandemic, the latter part of 2022 saw historic lows for aluminum prices.
Because of economic uncertainty and the recent unpredictability of aluminum prices, it’s tough to say what’s in store for 2023. If you’re an aluminum supplier or manufacturer or looking to purchase large amounts of aluminum, it’s important to know what to expect in the coming year. We will put your mind at ease and let you know what aluminum prices will do in 2023.
Recent Trends in Aluminum Prices
While there’s uncertainty moving forward about the prices of construction materials in general, none have been more volatile than aluminum. When the pandemic hit in 2019 and 2020, aluminum prices dropped drastically due to a lack of demand. However, when the world returned to normal and production resumed in the latter part of 2021 and 2022, aluminum prices were at a record high of just under $3,500 per ton.
Since those record highs, however, demand has decreased, and supply has increased, resulting in a sudden drop in aluminum prices. Within several months, aluminum prices dropped to around $2,200 per ton, making it one of the sharpest declines in history. This sudden drop was bad news for aluminum suppliers and manufacturers worldwide.
The Current State of Aluminum Prices
As of late 2022 and the first month of 2023, aluminum prices are slowly increasing. While they’re down by more than 40% from last year, aluminum prices have increased by 4.17% in the last month and nearly 12% from the record low in September. Due to several factors, El Paso aluminum suppliers are still determining if those prices will hold steady, increase, or decline.
According to most experts, however, aluminum prices will decline slightly in the coming months and level out to an average price of $2,350 per ton for 2023. Contact us to learn more about current aluminum price trends.
Factors That Affect the Price of Aluminum
In case you haven’t noticed, the United States is experiencing record inflation rates, and we have been for a while. Inflation affects all goods and products, including aluminum and other sheet metals. Future aluminum prices will depend on whether or not inflation increases or decreases.
The Global Supply Chain
Aside from inflation, the global supply chain has the biggest impact on aluminum prices. Because China is the leading distributor of aluminum and they’ve had a recent surge of Covid, it’s expected that aluminum prices will fall due to a lack of production. However, as production resumes, aluminum prices should rebound once again.
The availability of people to produce aluminum plays a big role in the global supply chain. If enough people produce aluminum to keep up with the current demand, aluminum prices should remain steady or decrease slightly.
Availability of Aluminum
As with all things, supply and demand will play a huge role in aluminum prices. As long as aluminum is readily available and demand isn’t too high, aluminum prices should drop slightly.
Which Aluminum Supplier Has the Best Prices in El Paso?
Regardless of what the economy does to aluminum prices, you can turn to the pros at Chaparral Steel in El Paso and Chaparral for affordable, reliable aluminum. We do everything in our power to keep our prices steady and are an industry leader for all your sheet metal needs. Contact us online or call (575) 824-7796 for our current prices and to place an order today!