About aluminium

Aluminum is a lightweight, corrosion resistant metal used mainly in aerospace applications, as a construction material, in packaging, automobiles and railroad cars.

It may be hard to believe but only 150 years ago aluminium was considered to be silver from clay and an extremely expensive kind of metal. Today, aluminium ranks number two in the consumption volumes among all the metals, surpassed only by steel. In the coming decades the demand for aluminium will continue increasing at unstoppable rates.

Recent developments in the motor industry, the rapid growth of cities, new potential uses of aluminium as a substitute to copper in the power industry – these and many other trends mean that the winged metal is well placed to strengthen its dominant position as a key structural material of the 21st century.

During the period from 1854 until 1890 only 200 tonnes of aluminium was produced

Following the invention of the electrochemical method of aluminium production, the scope of aluminium production and application began expanding almost exponentially.

In the 10 years that followed, from 1890 until 1899, global aluminium production amounted to 28 thousand tonnes. By 1930 it had increased by 10 times – to 270 thousand tonnes, which is equal to the output of today's average aluminium smelter. In the middle of the twentieth century global aluminium production amounted to 1 million tonnes a year, and in 1973 – 10 million tonnes. These trends persisted in the following decades, and in 2014, production volumes exceeded 55 million tonnes. It is expected to amount to 60 million tonnes in 2016.

This rapid increase in the production of the winged metal was brought about by the improvement of production methods, on the one hand, and by the expansion of the scope of application of aluminium, on the other hand. Major structural advances such as industrialisation, urban extension, and technological advances – aluminium came to be an integral part of all these trends. Nowadays, the high rates of aluminium consumption in terms of kilogram per capita are regarded by economists as one of the clear indicators of a robust and well-developed economy. It is little wonder that the leaders in terms of aluminium consumption are those states with a high GDP, including such beacons of technical progress as the USA, Japan and the developed European countries.

Resources of bauxites, the raw material for aluminum are only located in seven areas: Western and Central Africa (mostly, Guinea), South America (Brazil, Venezuela, Suriname), the Caribbean (Jamaica), Oceania and Southern Asia (Australia, India), China, the Mediterranean (Greece, Turkey) and the Urals (Russia).

How we trade our aluminium?

T-bars produced by KAP are listed in the London Metal Exchange (LME).

The LME is the world centre for industrial metals trading.

All brands approved for good delivery against LME contracts must conform to strict requirements on quality, shape and weight, as outlined by the exchange.

Every metal traded on the LME must conform to strict specifications regarding quality, lot size and shape.

Each LME tradeable contract is likewise governed by rules covering (but not limited to) prompt dates, settlement terms, traded and cleared currencies and minimum tick size.

Price of aluminium is volatile: