LME Week: Aluminum sector sees power costs key to riding electrification trends

As industry leaders gather in London for one of the world’s largest metals events, S&P Global Energy Platts presents the LME Week thought leadership series, examining the forces redefining global metals markets and shaping the outlook for 2027 and beyond. This feature examines how producers are responding to rising aluminum demand through capacity expansions and recycling investments amid an increasingly fragmented global market.

The global aluminum market enters 2027 with stronger fundamentals. Producers are confident in long-term demand, driven by grid expansion and e-mobility, among other electrification and energy transition trends. However, industry players in this highly fragmented market remain sensitive to volatility and uncertainty in energy costs, trade regulations and the geopolitical landscape.

Hydro Extrusions, a unit of Norwegian energy and aluminum company Norsk Hydro, is “seeing strong long-term trends driven by electrification, renewable energy, copper substitution and circularity,” its executive vice president, Paul Warton, told Platts, part of S&P Global Energy. “The underlying role of aluminum continues to strengthen, as grid expansion, mobility, buildings and infrastructure all require lightweight, durable and recyclable materials.”

McKinsey & Company expects global aluminum demand to expand at a compound annual growth rate of 2% from 2025 to 2035, underpinned by the build-out of data centers, which the consultancy estimated Oct. 13 require 16 mt of aluminum per megawatt and could account for 1.1% of total global aluminum demand by 2030.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →