Alcan Inc.'s (AL) cable business was enjoying "the best year on record" in terms of price and sales volumes as a result of consumers favoring aluminium due to high copper prices, the company said Tuesday.
"Customers in China and elsewhere are moving from copper to aluminium. In China where historically certain applications only used copper, customers are now more flexible to use aluminium solution," Alcan's Chief Executive Officer Dick Evans said at the third-quarter results presentation.
"The receptivity for aluminium is far greater now as construction costs particularly for large buildings, not residential buildings, have gone up sharply," Evans said.
London Metal Exchange copper prices have shot up to a record $8,825 a metric ton this year and are currently trading at $7,385/ton.
LME aluminium on the other hand hit a record high of $3,300/ton in May, and last traded at $2,791/ton, causing the historical spread between the two metals to balloon to unprecedented levels.
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