9th March 2026
Aluminium's surge is already raising UK construction, car‑manufacturing, and packaging costs and other metals like copper and nickel are climbing too, while steel is rising more moderately.
Aluminium is at multi‑year highs due to supply shocks and tariffs, and UK industries that rely heavily on imported metals are feeling the pressure. Below is a clear breakdown of impacts and a comparison with other key industrial metals.
Impact on UK Construction
Rising aluminium prices are adding to an already strained construction sector.
Key effects
Higher material costs
UK contractors are already facing rising costs due to global supply chain shocks and tariffs on aluminium and steel.
Increased project risk
Reports warn contractors to plan for further volatility as aluminium and timber imports become more expensive.
Broader inflation in materials: The construction industry has been hit by multiple crises since 2020, with material costs a major pressure point.
Practical consequences
Higher costs for windows, cladding, roofing systems, curtain walling, and structural components.
Contractors may delay projects or renegotiate contracts due to price uncertainty.
Developers face tighter margins and potential project slowdowns.
Impact on Car Prices
Aluminium is essential for:
Body panels
Engine components
EV battery housings
Lightweight structural parts
What rising prices mean
Higher manufacturing costs for UK and EU carmakers, who rely heavily on imported aluminium.
EVs are especially affected, as they use more aluminium than petrol/diesel cars.
Manufacturers may pass costs to consumers through higher retail prices or reduced discounts.
While no single source quantifies the exact pass‑through, the same supply‑chain pressures affecting construction also hit automotive manufacturing, especially with tariffs and global shortages.
Impact on Packaging Costs
Aluminium packaging (cans, foils, trays) is directly affected.
What’s happening
Aluminium costs have soared to record levels, driven by tariffs and tightening global supply.
Packaging manufacturers face higher production costs and increased competition for materials.
Companies may switch to alternative materials or redesign packaging to reduce aluminium use.
Likely consumer impact
Higher prices for canned drinks, ready meals, and foil‑based packaging.
Potential shrinkflation or packaging redesigns.
Comparison With Other Metals (Copper, Nickel, Steel)
Copper
Copper prices surged 29% in early 2025, driven by trade barriers and strong demand from renewable energy and EV sectors.
Copper is at or near record highs in some markets due to speculative demand and geopolitical tensions.
Impact
Electrical wiring, motors, EVs, and construction all face higher costs.
Nickel
Nickel prices have risen due to Indonesia’s plan to cut production by one‑third in 2026, tightening global supply.
Impact
Stainless steel, EV batteries, and aerospace components become more expensive.
Steel
Steel rebar futures recently rose as China pledged to curb excess capacity, supporting prices.
European steel prices are also supported by the EU’s Carbon Border Adjustment Mechanism.
Impact
Construction and manufacturing costs rise, but steel’s increase is less extreme than aluminium or copper.