Essay on The monthly LME spot price for aluminium in USD per tonne

On The monthly LME spot price for aluminium in USD per tonne between June 2008 and June 2014 - Essay Example China’s economic growth during the period of the fluctuations in the prices of aluminium affected the price of the metal. Secondly, there was a consolidation of the steel industry affecting the trend of the prices in the metal across the globe. More so, global warming and carbon sequestration must also have had a hand in the fluctuations in the aluminium prices. Finally, the rising costs of production and the loss of value of the US dollar must played a role in the changes in price of the same product. Historically, the prices of metals across the board always had a positive or an upward trend whereas the dollar kept at a constant for long period of time. The duration and amplitude of price fluctuations in the case in question must have been as a result of numerous change in the economic strength of the metal market in general (ASWATHANARAYANA,2012). Considerations in supply and demand of aluminium and unexpected events like natural disasters and accidents do influence the variations in the price of the aluminium during that given period of time. The global events in question are like recessions, economic growth and inflation do affect or influence the trend in the prices of the aluminium. The demand for metal in China was a result of the infrastructural expansion in the country. I think, in August 2008, the increase in price of aluminum was a result of the increased demand in the aluminum metal due to the intensive development in china ta that specific time. The inflation and recession of 2008 that affected most countries in the world must have been reasons for the fluctuations in aluminium prices. Minerals have a high tendency of losing when it comes to changes in the economic climate of the market and the general market. Inflation made the demand for the aluminium go down leading to the fluctuation in price during that period of June 2008 to June 2014 (