Aluminum screws, fittings, and flashings are an integral part of our trade as roofers and siding installers. Hence the rising cost of aluminum affects our input costs, although our clients may be unaware.

We share the current situation as it affects us here in the interests of transparency. We are trying our level best to keep our contract rates steady, especially while the COVID-19 pandemic holds the Canadian economy to ransom.

Aluminum Costs Rise to Near-Record High

Bloomberg News reported August 21, 2021 the rising cost of aluminum reached $2,726.50 a ton on London Metal Exchange. This continued the prevailing trend, and was coming closer to the all-time $3,300 a ton record in 2011.

Goldman Sachs Group Incorporated, Citigroup Incorporates and Trafigura Group all predict further gains fueling wider inflation. This will inevitably knock through to our Canadian suppliers, and affect the aluminum products that became part of Canadian life.

The China Factor Affecting the Rising Cost of Aluminum

Aluminum smelting is a highly energy-intensive process. This in turn impacts on global warming and climate change. China is under international pressure to reduce its emissions, and has chosen aluminum production as a target.

The Asian nation is cutting back on local production by increasing imports. This is affecting the international supply-demand and pushing prices higher.

‘A slew of Chinese policies has recently come to affect aluminum output, pushing prices higher,’ according to a Shanghai analyst.  ‘Policies including the power consumption cap are expected to stay through the rest of the year. So the upside momentum remains for aluminum. Prices can hardly retreat as long as demand remains intact.’

Valiant Exteriors is doing everything we can to reduce the impact of the rising cost of aluminum on our projects. We are investigating alternative screws, fittings and flashing as we write.

However, we cannot and will not allow this to lower the quality that made us a Calgary household name. We are proud of what we do, and we do not wish to lower our standards.

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