Factor Analysis and Influence of Aluminum Price

Abstract

Since 2018, the large fluctuations in aluminum prices have had an impact on the economy as well as the related industrial chain. To lessen the impact of aluminum price fluctuations and to reduce the volatility of aluminum prices. This paper aims to investigate the various factors influencing aluminum prices and the degree to which each factor affects aluminum prices. This paper examines the price trend of aluminum over the past decade, the price of aluminum, and the impact of various factors such as the Russian-Ukrainian war and the pandemic on the price of aluminum. This paper states some observations. The supply of alumina and the price of electricity have a significant impact on the price of aluminum, and the supply and demand of aluminum, as well as the global economy, are closely related to the price of aluminum. The government should implement a sound monetary and economic policy and stabilize the energy supply in order to reduce the volatility of aluminum prices and their effect on production.