Aluminium avoids slump in commodities as cars drive demand

London

AT a time when other commodities are slumping, aluminium is making a comeback as carmakers under pressure to build more fuel-efficient cars increase their use of the lightweight metal.

While copper prices are down 14 per cent this year and iron has slipped 7.7 per cent, aluminium has gained 0.1 per cent. The rise is small but significant, marking an improvement from a year in which the price of aluminium fell to its lowest level since 2009. Meanwhile, producers including Alcoa and Rio Tinto Group predict demand will continue to rise over the next few years as the metal grows in importance to car makers.