"The S&P 500 ended another double digit gain year in 2025, close to +17%. While the main focus has been on precious metals, such as gold (+70%) and silver (+169%), other commodities made surprising record gains. One of them was the ubiquitous aluminum, which notched a 2025 +38% gain. This essential component of everything from beer cans to jet planes added +842 points between April 2025 and the end of the year."
"The reasons for this scenario are partially related to US tariff policies and other geopolitical factors, but there are also processing and mining causes that give investors and analysts expectations for the current price trajectory to continue. I previously covered some companies whose stocks should benefit from price rises because of their crucial positions in the supply chain. This article will look at companies involved with mining or refining bauxite, the primary ore from which aluminum is derived, and their future prospects."
"China is the hands-down largest aluminum producer in the world. It also still exports most of the goods sold throughout the world in WalMarts, Targets, Boots, and other retail outlets, as China manufactures roughly 30% of all goods globally. In an effort to prevent deflationary pressures on its manufacturing base, it made a decision to prevent metal production overcapacity. Although the decision to curb its projected 45 million metric tons of aluminum production was made independently,"
The S&P 500 rose nearly 17% in 2025 while commodities rallied, with gold up 70% and silver up 169%. Aluminum gained approximately 38% in 2025, adding 842 points between April and year-end and affecting products from beverage cans to aircraft. Price strength stems from US tariff policies, geopolitical tensions, and processing and mining constraints that support continued upward pressure. Companies involved in mining or refining bauxite are likely to benefit from higher aluminum prices. China, as the largest aluminum producer and manufacturer of roughly 30% of global goods, curtailed expansion to avoid overcapacity, tightening global supply.
Read at 24/7 Wall St.
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