What does the "LME price" of aluminium mean ...

LME (London Metal Exchange) is the abbreviation for the London Metal Exchange, which is one of the oldest and largest metal trading centres in the world.

In addition to Singapore and New York, the reference prices for metals, including aluminium, are determined here daily on the basis of supply and demand.

As a raw material price, the LME price for aluminium is a factor that fundamentally influences the costs of extruded aluminium profiles.

However, the prices of extruded profiles are not only dependent on the LME price, there are also other influencing factors such as:

 

• Exchange rate: as the aluminium price is traded on the exchange in US dollars, changes in exchange rates also affect prices.
• Billet premium: For the production of extruded profiles, the aluminium billets have to be remelted into special billets, the costs for this are called "billet premium".
• Special surcharges: These include, for example, costs as a result of sharply increased energy prices.
• Profile cross-section: The larger and more complex the profile, the higher the price usually is.
• Surface condition: A surface treatment such as anodising, coating or special optical requirements increase the costs.
• Quantity: The larger the order quantity, the lower the price per unit can be.
• Competition: If there are many suppliers of extruded profiles on the market, this can lead to lower prices, while a limited number of suppliers can lead to higher prices.
• Transport costs: Transport costs can be included in the price depending on the delivery route and transport medium.

 

In summary, the LME price for aluminium as a raw material price is an important factor in determining the cost of extruded profiles.

The actual price can deviate significantly from this for the reasons mentioned above.