WHAT IS IT?
Aluminum (spelled aluminium outside North America) is the most abundant metal in the Earth's crust and the most widely used non-ferrous metal. It is lightweight (~1/3 the weight of steel), corrosion-resistant, highly conductive, and infinitely recyclable.
PRODUCTION CHAIN
Bauxite ore → Alumina (Al₂O₃) via Bayer process → Primary aluminum via Hall-Héroult electrolysis
Electricity is the main input — aluminum smelting is extremely energy-intensive (13–15 MWh/tonne)
FORMS TRADED
Primary Aluminum Ingot: 99.7% Al. LME deliverable (P1020 grade). Base trading unit.
Aluminum Billet: Cylindrical cast form for extrusion. Used in window frames, automotive, structural sections.
Aluminum Slab: Flat rectangular cast. Rolled into sheet, foil, packaging.
Aluminum Alloy: Mixed with silicon, magnesium, copper, etc. for automotive and aerospace casting.
Aluminum Scrap: Various grades. Secondary aluminum (recycled) uses only 5% of the energy of primary.
KEY USES
Transport (cars, trucks, aircraft, trains) — fastest-growing segment (lightweighting)
Packaging (cans, foil, flexible packaging)
Construction (window frames, cladding, roofing)
Electrical transmission cables (replaces copper in overhead power lines)
Consumer goods and machinery
TRADE CORRIDORS
Major producers: China (57% of global production), Russia (Rusal), Canada, UAE (Emirates Global Aluminium), Australia
Major buyers: USA, Europe, Southeast Asia, Japan
Tetra relevance: China and Middle East → SEA corridor.
PRICING BASIS
Benchmark: LME Aluminum (USD/MT). Physical premiums add on top: Midwest Premium (US), European Duty Paid Premium, Japanese Premium.
SPECIFICATIONS (LME P1020 Grade)
Aluminum: min 99.70%
Silicon: max 0.10%
Iron: max 0.20%
Available in T-bars, sows, ingots