Concerns about additional strain on the brewing and beverage industry were raised after aluminum prices hit their highest levels since 2008 on Tuesday.After China, which produces more than half the world's supply, is now scaling back its production as a way of fighting carbon dioxide pollution, the price for the lightweight metal on the London Metal Exchange (LME) reached USD 3,183.50 a ton. Aluminum used in packaging and transport has shot up by about 14% this year after gaining 42% in 2021.
Beer costs, particularly in markets like North America with a high share of single-use packaging, are vulnerable to fluctuations in aluminum prices as aluminum cans are a common form of packaging for beer.
"In the run-up to the Beijing Olympics there's been a lot of reduction in aluminium production to improve air quality," Reuters cites WisdomTree analyst Nitesh Shah. The analyst predicts that rising demand will push prices even higher over the long term.