Aluminum Shortage Drives Price Increases for Several Industry Suppliers

Companies in the glass and metal industry are facing price increases once again—this time from aluminum. Several suppliers including Oldcastle BuildingEnvelope® (OBE) and Trulite Glass and Aluminum Solutions have sent notices to some customers alerting of an increase in the price for aluminum products. At least one company was notified of an 8% increase by each organization.

A number of glazing industry companies have reported prices on various products such as glass, PVB and other raw materials since May of this year.

“The shortage of aluminum in the United States has resulted in unprecedented increases in prices and may last up to two years,” according to Trulite’s price notification letter. “The cost of aluminum has risen more than 50% since January and experts believe it will continue to go up. Unfortunately, aluminum is not the only thing increasing in price. We have seen a dramatic increase in the cost for fuel, wood, and wages These increases make it necessary to implement an 8% price increase effective September 6 for all of our aluminum systems and their respective components.”

OBE released a similar statement, saying that “strong demand for aluminum-intensive products and the ongoing global supply chain challenges will continue to put pressure” on the overall cost of aluminum.

According to the London Metal Exchange, the global center for the trading of industrial metals, the price per ton of aluminum jumped from $2,544 on August 19 to $2,648.50 on August 24.

The unprecedented rise follows a recent fire that broke out in the Jamalco refinery in Jamaica, which has led to concerns of tighter supply.

Noble Group Holdings Ltd. (NGH), industrial raw materials supply chain manager, affiliate company General Alumina Jamaica Limited is a co-owner of the Jamalco joint venture. NGH released a statement saying “A major fire which broke out at Jamalco’s Powerhouse on Sunday, 22 August has been extinguished. The Powerhouse produces power, compressed air and steam for the alumina refining operations.”

The statement also says that no serious injuries were reported and a full assessment of the damage will be done to determine the cause of the fire and estimate the full extent of the damage.