Why is there a shortage of aluminum?

+1 vote
asked Aug 10, 2020 in Conservation by Falktynski (310 points)
Why is there a shortage of aluminum?

1 Answer

0 votes
answered Aug 11, 2020 by Larry S (42,350 points)
There's a shortage of new aluminum being made and a shortage of aluminum cans being made but there's no actual shortage of scrap and old aluminum that can be recycled into new aluminum and aluminum cans.

Scrap Metal yards and recycling facilities have a lot of baled up aluminum scraps that can be recycled.

However aluminum prices are so low right now that some scrap yards are holding onto their scrap aluminum for better prices.

Within a couple years the aluminum prices will likely go up more so the scrap yards are waiting for that price hike in the scrap aluminum so they can make a good profit.

Also the manufacturing plants that make aluminum products and aluminum cans as well as the scrap metal melting plants are not operating at the high capacity it was before.

Some aluminum smelter plants and aluminum manufacturing plants are also closed or under staffed.

So there's either no aluminum cans being made or aluminum products at some places and at some places the aluminum cans and aluminum products have slowed down.

Once the manufacturing plants and aluminum smelting plants get back to working or working at full capacity then the aluminum prices for scrap should go up and there will be no more shortage of aluminum.

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