Aluminium may not be a great commodity tips to trade . There is unlimited bauxite , and smelting capacity is in excess and , as power efficiency improves , potentially , unlimited amounts of aluminium can be produced to meet any amount of demand . So that leaves aluminium vulnerable to drops in demand .
Aluminium is not a hot favourite for trading with retail investors . That is confirmed by the lack of interest of ETFs in aluminium .
Aluminium is the third most abundant element in the earth’s crust and constitutes over 7% by mass . The full process of manufacturing new stocks of aluminium is responsible for 1% of the world’s greenhouse gas emissions .
In terms of cost, aluminium smelters that run on natural gas, as is the case in Dubai and some other countries, have a cost advantage . Aluminium smelters that run on any other fuel, like they do in india or china, are inefficient .
Aluminium has been in commercial use for just over a century . It weighs about one-third as much as steel or copper . It is malleable, ductile, and easily machined and cast and has excellent corrosion resistance and durability .
Measured either in quantity or value, aluminium’ s use exceeds that of any other metal, expect iron . it is used in transportation,packaging, construction, consumer durables, electrical transmission lines, machinery, and many other application .
Composites can substitute for aluminium in aircraft fuse-lages and wings . glass, paper, plastic, and steel can substitute for aluminium in packaging . magnesium, titanium, and steel can substitute for aluminium in ground transporation and structural uses . Composites, steel, vinyl, and wood can substitute for aluminium in construction . Copper can replace aluminium in electrical applications .
Bauxite is a naturally occurring, heterogeneous material composed primarily of one or nore aluminium hydroxide minerals, plus various mixtures of silica, iron oxide, titania, aluminosilicate, and other impurities in minor or trace amounts . The principal aluminium hydroxide minerals found in varying proporations with bauxite are gibbsite and the polymorphs boehmite and diaspore .
bauxite are typically classified according to their intended commercial application; abrasive, cement, chemical, metallurgical refactory, etc . The bulk of world bauxite production is used as feed for the manafacture of alumina via a wet chemical caustic leach method commonly known as the bayer process .
Alumina produced from this refining process is used to produce aluminium metal.