5 main things cause changes in sheet piling prices. 1. Demand from China, 2. Demand for the world transportation sector, 3. Demand from the construction industry, 4. Input costs and 5. US dollars. China is the country that has the most influence on changes in aluminum prices. China uses more than 40% of the annual global supply of aluminum each. The strong growth in China’s GDP over the past two decades has driven many industrial commodity prices higher. Chinese companies have a growing demand for aluminum in the packaging sector. Additionally, the real estate, transportation, and electronics sectors have all seen their demand for aluminum. In developed countries, the auto and aerospace industries are the most important markets for aluminum. The aluminum industry faces competition from lighter composite materials that are trying to replace aluminum as a construction material. Carbon fiber materials, for example, are playing a role in the growth of the aviation market. As composite materials can make technological advances and become more affordable, the demand for aluminum can be reduced.
The construction and building market represents the second-largest industrial demand for aluminum. In developing countries, aluminum accounts for about 30% of building materials. Construction growth rates are variable. Interest rates, unemployment, and the economy as a whole can influence demand and, depending on, the price of aluminum. The cost of producing aluminum can have a significant impact on its price. Aluminum production uses a large amount of energy in the smelting process. Changes in the cost of oil or electricity ultimately feed the price of aluminum. When it comes to aluminum recycling, the cost of scrap metal can also have a direct impact on the price of the finished product. The US currency is the world’s reserve currency and as a result, aluminum and other commodities are quoted in US dollars. Aluminum producers receive fewer dollars for their products when the US currency is strong and more dollars when the currency is weak.
Apart from China, the country Australia is also a large producer of aluminum and that is largely due to the nation’s large bauxite production. Australia is the world’s leading producer of bauxite and this is due to a large amount of ore found in the country.