Aluminium Industry and Company Update

At BAL Group we generally use this platform to share positive news about the aluminium industry and the progress we are making as a company.  

Unfortunately, this article is contrary to our normal up-beat view.

Challenging times

Regrettably, as an industry we are facing a very difficult period, mostly due to issues many miles from these shores. As a manufacturer of aluminium heatsinks, aluminium fabrication and aluminium components these concerns are having a direct effect on our business.

Twenty percent of the world’s aluminium is smelted in the Middle East and due to world events, a number of the facilities have been closed.  As a result, product that was ready for despatch has been detained due to the shipping lanes being closed.

Effect on aluminium market sector

This has now created a shortage of supply which has meant the price of aluminium has increased significantly and in recent days that increase in price has accelerated. 

As a manufacturer of finished aluminium components we have to purchase raw aluminium.  We are now facing a new issue as some of our suppliers have now decided to increase the minimum order quantity. 

However, let’s try to be positive for the future – onwards and upwards!