2025 Aluminum Market Analysis: Price Trends by Type and Investment Strategies

Aluminum is a key raw material in major industries such as aerospace, automotive, and construction, and is actively traded worldwide. In this article, we will take a detailed look at the current aluminum market situation in 2025, analyze the prices of different types of aluminum, and explore effective investment strategies.

Industrial Value and Characteristics of Aluminum

Aluminum is the second most abundant metal in the Earth’s crust after oxygen and silicon. It is lightweight, with a weight only about one-third that of iron, while maintaining comparable strength. It also exhibits excellent thermal and electrical conductivity. Its corrosion resistance and superb workability are also major advantages.

Due to these properties, aluminum is used very broadly. It is found in many everyday products, including transportation manufacturing, building materials, home appliances, kitchenware, and sports equipment. The importance of aluminum is increasing further with the expansion of electric vehicle production and the shift to renewable energy, which drives demand for electrical infrastructure.

Price Trends of Aluminum in 2024

Over the past year, the aluminum market has shown a clear upward trend. Starting from $2,179 per ton in February 2024, prices reached $2,655 in February 2025, representing a 21.84% increase.

Monthly Price Changes:

• February 2024: $2,179
• April 2024: $2,499 (12.11% increase)
• May 2024: $2,566 (near peak level)
• June–July 2024: $2,497→$2,349 (5.93% decrease)
• October 2024: $2,595 (annual high)
• January 2025: $2,571
• February 2025: $2,655

In the first half of the year, the surge in electricity demand driven by the expansion of the AI industry and increased demand for raw materials for wiring pushed prices upward. Conversely, a correction occurred mid-year due to decreased global demand caused by sluggish real estate markets in China, but prices recovered quickly afterward.

Major Factors Influencing Aluminum Prices

Tariff Policies: Policies by developed countries to restrict low-cost imports tend to push prices higher.

Geopolitical Risks: Events like the Russia-Ukraine war cause supply instability, directly impacting prices.

Industrial Demand: The economic conditions of construction, automotive, and aerospace industries influence aluminum demand.

Energy Costs: Since aluminum production requires massive amounts of electricity, fluctuations in energy prices directly affect production costs and final prices.

Environmental Regulations: Stricter carbon emission regulations increase production costs, leading to higher prices.

Market Outlook for Aluminum in 2025

Currently, aluminum prices are stable around $2,611 per ton. The pattern has been sideways, with no significant upward or downward trend since the beginning of the year.

Experts suggest that tightening tariffs under the Trump administration could raise concerns about global aluminum supply, potentially pushing prices into the $2,500–$3,000 per ton range this year. While reaching $3,000 per ton is quite feasible at current levels, high volatility is expected, so cautious investment is advised.

Price Characteristics of Different Types of Aluminum

Ore Form: Bauxite ore prices vary significantly depending on the refining level.

Refined Aluminum: Industrial-grade refined aluminum with purity over 99.7% commands a premium over ore.

Alloy Products: Special alloys for aerospace and automotive use are priced much higher than pure aluminum.

Recycled Aluminum: Scrap recycling aluminum is cheaper than new refined products but is considered to have high supply stability.

Effective Aluminum Investment Strategies

( Arbitrage)CFD###

Using CFD trading products instead of physical spot trading allows profit generation from price fluctuations without the costs of storage and transportation. CFDs offer opportunities for both upward and downward price movements.

( Understanding Leverage Trading

For example, using 1:10 leverage, you can trade 1 ton of aluminum worth $2,655 with only about $265 of capital. This greatly improves capital efficiency but also increases the risk of losses, so caution is necessary.

) Essential Preparations Before Investing

• Predict price directions through technical and fundamental analysis
• Use only manageable levels of leverage
• Continuously monitor aluminum-related news and economic indicators
• Conduct thorough learning and establish risk management plans before trading

Conclusion

Aluminum is becoming an increasingly strategic raw material amid global energy transitions and industrial diversification. The aluminum price in 2025 is expected to fluctuate amid policy uncertainties and demand changes.

By analyzing the prices of different types of aluminum, understanding market specifics, and utilizing efficient trading tools like CFDs, investors can succeed. However, thorough analysis and risk management are essential for making sound investment decisions in aluminum.