Important Notice: Aluminium Price Volatility and Contract Pricing
Important Notice: Aluminium Price Volatility and Contract Pricing
Important Notice to Customers
The aluminium industry is currently experiencing a period of rapid and sustained price volatility, creating immediate and unavoidable impacts across supply chains, contract pricing, and project costs. This notice is issued to provide transparency around current market conditions and to support necessary adjustments to pricing agreements.
Over recent months, global market pressures have intensified at a pace that is difficult to predict or absorb within traditional pricing structures. Businesses across manufacturing, construction, and supply sectors are now facing cost increases that extend far beyond normal fluctuations.
This notice is intended to assist customers in understanding the situation and to provide formal support where contract pricing revisions are required.
Current Market Conditions
Recent data confirms that aluminium pricing has risen significantly within a short timeframe. The London Metal Exchange (LME) price for aluminium has increased by more than 20% over the past six months . This sharp rise is one of the key drivers behind the current pricing environment.
At the same time, global energy markets have added further pressure. Brent crude oil has reached approximately US$100 per barrel, directly influencing production and transportation costs . Fuel-related expenses have escalated rapidly, with diesel prices increasing by nearly 50% in just six weeks and now averaging close to $3.00 per litre .
In addition to base metal pricing, aluminium premiums have also risen sharply. The Major Japanese Ports (MJP) premium has increased from US$195 per tonne to US$352 per tonne for the second quarter of 2026 . The 6060 aluminium billet premium has similarly increased from US$165 to US$198 per tonne .
These combined factors are contributing to a significant and ongoing escalation in overall aluminium costs.
Impact Across the Supply Chain
The effects of these increases extend well beyond raw material pricing. Cost pressures are now being felt across every stage of the aluminium supply chain, including sourcing, manufacturing, processing, transport, and final delivery.
As outlined in the official industry communication, these changes have created substantial cost pressures across the full supply chain . This environment makes it increasingly difficult for suppliers to maintain previously agreed pricing, particularly in contracts established under earlier market conditions.
For many businesses, the current situation introduces uncertainty into budgeting, project planning, and long-term procurement decisions.
Contract Pricing Advisory
Given the current level of volatility, fixed pricing arrangements over extended periods are no longer sustainable in most cases. The speed and scale of cost increases mean that holding prices for long durations exposes both suppliers and customers to significant financial risk.
Short-term market forecasts suggest further increases of approximately 10% to 15% may occur in the near future . As a result, it is strongly advised that pricing agreements be reviewed and adjusted accordingly.
Customers are encouraged to avoid entering into contracts where pricing is fixed beyond short timeframes. Instead, flexible arrangements that reflect current market conditions should be considered to ensure fairness and continuity of supply.
Supporting Contract Adjustments
This notice is provided as supporting documentation for customers who require formal justification when revising contract pricing. The current pricing environment is driven by external global factors and is not reflective of standard or predictable market behaviour.
Providing clear documentation of these conditions helps ensure transparency and supports open communication between all parties involved in supply agreements.
Moving Forward
We remain committed to working closely with our customers during this period of uncertainty. Our priority is to maintain reliable supply while ensuring pricing reflects the realities of the current market.
Open communication and proactive engagement are essential. Customers are encouraged to discuss any concerns, review existing contracts, and explore pricing structures that align more closely with ongoing market changes.
The aluminium market is undergoing a period of significant volatility, driven by increases in global commodity prices, energy costs, and supply chain pressures. These factors are directly impacting contract pricing and require a more flexible and responsive approach.
We appreciate your understanding and cooperation as we navigate these conditions together, and we remain committed to supporting our customers with clear, transparent, and timely information.