If you’ve tried to source soda cans, window frames, or high-end bike parts lately, you’ve probably noticed something annoying. Prices are up. Way up. Honestly, if you’re asking how much does aluminium cost right now, the answer changes by the hour, but the vibe is definitely "expensive."
As of mid-January 2026, we are seeing a massive squeeze. On the London Metal Exchange (LME), aluminium is currently trading around $3,190 per tonne. To put that in perspective, that’s about a 24% jump from this time last year. It’s the highest we’ve seen since the post-pandemic chaos of 2022.
If you're buying by the pound in the U.S., you're looking at roughly $1.43 per lb for primary ingots. But wait—that’s just the "paper" price. Once you add in the "Midwest Premium" (the cost to actually get the metal to a warehouse in America), you’re paying significantly more.
The 2026 Reality: Why Is Everything So Expensive?
You might think it’s just inflation. Kinda. But the real story is a "perfect storm" of energy wars and policy shifts. For starters, China—which basically makes half the world’s aluminium—hit a hard wall. They have a 45-million-tonne production cap to keep their power grid from exploding and to meet carbon goals. They're basically at that limit now.
Then there’s the AI factor. This sounds wild, but it’s true. Aluminium smelters need an ungodly amount of electricity—specifically about 13 to 15 megawatt-hours per tonne. Right now, these smelters are literally competing for power contracts against massive AI data centers. Guess who has deeper pockets? The data centers. This has left smelters in places like Iceland and Australia struggling to keep the lights on, driving the how much does aluminium cost conversation into territory most manufacturers hate.
Breaking Down the Costs by Form
If you're a hobbyist or a small business owner, the $3,190 "tonnage" price is just a baseline. Nobody buys a single pound of aluminium at the LME rate. Here is what the market looks like for different types of the metal right now:
- Primary Ingot (P1020): This is the "pure" stuff. You'll see this quoted most often. With regional premiums, European buyers are paying the LME price plus a $330-$360 surcharge per tonne.
- Sheet Aluminium: Expect to pay a hefty markup for processing. Most local suppliers are charging between $2.50 and $4.00 per pound depending on the gauge and alloy.
- Scrap Aluminium: If you're looking to sell, you're in luck. Clean "bare bright" or sheet scrap is fetching about $0.55 per pound at the yard. Old cans (UBC) are hovering around $0.56 per pound. It’s a good time to clean out the garage.
- Secondary (Recycled) Alloys: These are slightly cheaper than primary metal but still track the general market surge.
Geopolitics and the "Green" Tax
We can't talk about the cost without mentioning the CBAM—the Carbon Border Adjustment Mechanism. It’s a fancy name for a carbon tax on imports into the EU. If you’re importing aluminium made with coal power (like some of the stuff coming out of Asia), you’re getting hit with an extra €375 to €450 per tonne in carbon costs.
This creates a two-tier market. "Green" aluminium, made with hydropower in Canada or Norway, is now fetching a premium because it helps companies avoid those carbon taxes. So, the question of how much does aluminium cost often depends on how "clean" the metal is.
The Substitution Game: Aluminium vs. Copper
Here’s a fun detail. Copper is also hitting record highs—over $13,000 a ton recently. Because aluminium is a decent conductor and much cheaper than copper, engineers are frantically switching designs to use aluminium instead. This "substitution demand" is actually propping up aluminium prices. Even at $3,000+ per tonne, it’s still a bargain compared to the "red metal."
Practical Advice for Managing Costs
If you're a business owner or a contractor, the volatility is the real killer. You quote a job on Monday, and by Friday, your material costs have jumped 3%.
1. Watch the Premiums, Not Just the LME.
The LME price is the global benchmark, but the "Midwest Premium" in the US or the "Rotterdam Premium" in Europe tells you the real story of local supply. If premiums are rising, it means metal is physically scarce in your backyard, even if the global price looks stable.
2. Lock in Contracts.
If you know you need 10 tons of extrusions in six months, don't wait. Many suppliers are moving toward shorter quote validity periods—sometimes only 24 to 48 hours.
3. Embrace the Scrap.
With primary metal prices so high, using secondary (recycled) aluminium is no longer just a "green" choice; it’s a survival strategy. Recycled aluminium uses 95% less energy to produce, which insulates it slightly from the crazy electricity price spikes we’re seeing.
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What’s Next for 2026?
Most analysts from banks like ING and JPMorgan think we’ll stay in a "deficit" for the rest of the year. That means we’re using more than we’re making. Stocks in LME warehouses are at multi-year lows. Unless we see a major global recession that kills construction and car sales, don't expect a return to $2,000 aluminium anytime soon.
Keep an eye on Indonesia. They are trying to ramp up production to fill the gap left by China, but it’s taking longer than expected. Until that new supply hits the water, the cost of aluminium is likely to remain a heavy burden on the global manufacturing sector.
Actionable Next Steps
- Check Daily Spot Rates: Use platforms like Trading Economics or the LME website to track the daily "Cash" price.
- Audit Your Scrap: If you run a shop, ensure you are separating your 6061 from your 7075 alloys; mixed scrap sells for much less than "clean" sorted batches.
- Review Supplier Surcharges: Many distributors have added "energy surcharges" to invoices. Validate these against current natural gas and electricity indices to ensure you aren't being overcharged.
Expert Insight: Real-world pricing is currently being driven by "backwardation." This is a market state where the price for immediate delivery is higher than the price for delivery in three months. It’s a huge red flag that people are desperate for physical metal right now. If you have inventory, hold it. If you need it, buy it yesterday.
To stay ahead of these fluctuations, you should calculate your "burn rate" of raw materials and compare it against the current three-month LME forward curve to decide if hedging is right for your volume.