Aluminium price bounce back gladdens Icelandic smelters

The price of aluminium has gone over USD 2,000 per tonne for the first time since October, but the price could easily go down again, experts warn. The world aluminium price lowered from USD 3,300 per tonne in July 2008 to around USD 1,300in February, a 60 percent drop in seven months, RUV reports. The Icelandic aluminium smelting and energy industries are welcoming the news, but warn that prices go down as easily as they increase. The long term forecast is, however, positive according to international experts, with a predicted price of USD 2,900 after three years. A report released by Islandsbanki states that a steady increase in aluminium prices could lighten the load on Iceland’s finances over the coming period. The cost of energy the smelters pay energy companies in Iceland is linked to the global price of aluminium, and higher prices decrease their need to look to increase domestic revenue streams, including increased household electricity prices.