As has been the case for a couple of years, the last two months have been anything but uneventful.
One of the topics dominating the news headlines and affecting aluminium demand has been the shortage of computer chips, which has been especially acute in North America. The shortage has been so severe that automotive industry publications estimate the production of 800,000 vehicles in North America has been affected. The production loss is put at 136,000 vehicles in Mexico alone - equivalent to 18% of the output expected in the first four months of this year.
The impact is already being felt on aluminium scrap demand. Prices have been capped not only by the lower demand resulting from auto assembly line stoppages but also by the abundant supply of Twitch from the USA owing to the shortage of containers.Read More
Alejandro Jaramillo , Glorem SC (MEX), Chairman of the BIR Latin America Committee