Aluminum prices surge as environmental rules and power costs bite
Business
Aluminum just got a lot pricier, hitting over $3,600 per metric ton on the London Metal Exchange and nearly ₹390 per kilogram on MCX as of May 25, 2026.
Unlike before, producers can't just ramp up supply to match demand because strict environmental rules and high electricity costs (which make up about 40% of production expenses) are holding things back.
LME stocks low, EVs boost demand
LME stockpiles have dropped to one of the lowest levels since mid-2022, making the market even tighter.
With more demand coming from electric vehicles and renewable energy projects, even small supply hiccups are pushing prices higher, and these elevated prices aren't going away anytime soon.