2 Aluminium Price Correlations

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Aluminium

Price

Correlations

Since coal is the dominant power source for aluminium production, there is a clear correlation between aluminium and coal.

Strong direct correlation caould be seen between 2012 and 2014. Afterwards slight decoupling based on strong other factors (API in the alumina market and high market premiums) changed the correlation, but trends were still underlined.

This correlation is binominal over the past 10 years

2010 – 2014: blue points
2014 – 2019: orange points

Correlation Factors of 0.7 and 0.8 are fairly dominant.

Raising Raw Material Prices, especially Alumina shifting the correlation Aluminium vs. Coal.