2025 Aluminum Market Analysis and Price Trends: 1kg Unit Investment Guide

Aluminum is becoming increasingly important as a core industrial raw material beyond just a spot investment product. In this article, we will comprehensively examine the key characteristics of the 2025 aluminum market, the trend of aluminum 1kg price, and efficient investment strategies.

Industrial Value and Application Fields of Aluminum

Aluminum, the second most abundant metal on Earth after oxygen and silicon, is a key material for industrial innovation. It weighs about one-third of iron but boasts comparable strength, along with excellent thermal and electrical conductivity. It has superior corrosion resistance, is highly malleable, and can be reconfigured into various forms. Most importantly, it is recyclable, which is a significant asset.

Thanks to these properties, aluminum is used extensively in aerospace, automotive, shipbuilding, chemical, electrical, and electronic industries. From structural components of aircraft, cars, and ships to interior and exterior building materials, kitchenware, home appliances, sports equipment, and industrial parts, aluminum is present throughout our daily lives.

Price Fluctuation Trends of Aluminum in the Past Year

Monthly price data and fluctuation patterns

Over the past year, aluminum prices have shown a clear upward trend. From $2,179 per ton in February 2024 to $2,655 in February 2025, representing an increase of approximately 21.84%, with an average monthly growth rate of about 1.75%.

Major price movements in 2024:

• February 2024: $2,179
• March 2024: $2,229
• April 2024: $2,499 (12.11% increase)
• May 2024: $2,566
• June-July 2024: approximately 5.93% decrease (Global demand slowdown, Chinese real estate downturn)
• August-September 2024: price recovery
• October 2024: $2,595 (Yearly high)
• November 2024: $2,582
• December 2024: $2,540
• January 2025: $2,571
• February 2025: $2,655

The sharp rise from March to April 2024 was driven by several positive factors, including increased electricity demand due to the AI boom, surging demand for copper and aluminum as raw materials for wiring, and prospects for expanded electric vehicle production in China.

Key Factors Influencing Aluminum Price Fluctuations

( Tariff policies and international trade environment

Tariffs are the most critical variables directly affecting aluminum prices. The US imposes significant tariffs on low-cost imported aluminum products, which exerts upward pressure on global aluminum prices.

) Geopolitical instability

The Russia-Ukraine conflict significantly impacts aluminum supply structures. The prolongation or resolution of the conflict can cause substantial fluctuations in aluminum supply, likely triggering price volatility.

Industrial demand factors

The economic health of construction, automotive, and aerospace industries determines aluminum demand. A global economic slowdown can lead to reduced production in these sectors, ultimately decreasing aluminum demand and prices.

Environmental regulations and energy costs

Stricter carbon emission regulations increase aluminum production costs. Rising energy costs required for aluminum smelting directly lead to higher aluminum prices. Energy supply stability is also a crucial variable.

Current Status and Outlook for Aluminum Prices in 2025

Current market situation

Currently, aluminum prices are around $2,611.8 per ton, showing no clear upward or downward trend since the beginning of the year. This indicates that the market is waiting for major news and economic indicators.

Expert forecasts and analysis

According to a report by JoSE Daily on February 24, 2025, major securities firms expect aluminum prices to range between $2,500 and $3,000 per ton this year, considering concerns over increased global aluminum supply due to the US’s 25% tariff administrative order.

While reaching $3,000 per ton is quite possible at current levels, high volatility is also anticipated. Therefore, thorough risk management is essential when investing.

Investment Strategies in Uncertain Times: The Benefits of Bidirectional Trading

Since predicting whether aluminum prices will rise or fall is challenging at this point, relying solely on unidirectional investments may cause missed opportunities. Using Contract for Difference (CFD) structures allows profit generation in both rising and falling markets.

Structure and practical value of CFDs

CFD### (Contract for Difference) is a trading product that settles only the difference in price between the opening and closing of a position. Buying 1 ton of aluminum physically involves significant additional costs such as storage, transportation, and insurance, but with CFDs, traders can track pure price movements without these burdens.

( Flexibility of bidirectional positions

If you expect prices to rise, you can take a long position; if you expect a decline, you can take a short position. This allows capturing opportunities even in sideways markets or during frequent trend reversals, overcoming the limitations of traditional spot trading.

) Capital efficiency through leverage

Leverage allows trading larger volumes than your capital. For example, with 1:10 leverage, you could trade approximately $2,655 worth of aluminum with only about $265 of capital, greatly improving capital efficiency.

Precautions when using leverage

However, leverage also amplifies potential losses. Higher leverage ratios increase both potential returns and risks. It is essential to conduct thorough technical and fundamental analysis before trading, accurately predict price directions, and only use leverage levels you can afford.

Practical Guide for Effective Aluminum Investment

( Preparations before trading

Open an account on a regulated trading platform that offers aluminum-related products. Choose a platform with user-friendly interface, various technical analysis tools, and real-time news updates.

) Core of trading: accurate price prediction

After registering on the platform, you can trade via mobile or PC trading systems. The key to successful trading is accurately predicting the future price direction of aluminum.

Continuous monitoring and analysis

To generate actual profits, the following are essential:

• Continuous monitoring of aluminum prices
• Tracking global economic news and tariff policy trends
• Technical analysis### chart patterns, moving averages, etc. ###and fundamental analysis### supply-demand, industry trends ###
• Preparing in advance for major events such as tariff announcements and geopolitical incidents

Aluminum is a noteworthy investment asset for 2025. By keeping an eye on aluminum 1kg price movements amid current market volatility and establishing strategies aligned with your investment style and risk management capabilities, you can seize new opportunities.