Aluminum is a cornerstone of modern manufacturing, essential for components made through casting, extrusion, rolling, and other processes. When sourcing for your project, the fundamental question is: how much is aluminum per pound?
As of the end of October 2025, the answer is multifaceted. The global benchmark price for primary aluminum is approximately $1.30 per pound. However, for buyers in the U.S., this is merely the starting point. The total cost, which includes critical regional premiums, typically lands $2.00 per pound.
This base price is just the beginning; the final cost is overwhelmingly determined by the specific alloy, its form, and the market conditions.
Understanding the Global Pricing Mechanism
Aluminum is a globally traded commodity, with its baseline price set per metric ton on the London Metal Exchange (LME).
For North American buyers, the Midwest Premium is a critical additional cost, covering physical delivery and regional supply logistics.
The LME Price Conversion
The LME price is quoted per metric ton. To find the price per pound, use this standard conversion:
LME Price per Ton ÷ 2,204.62 = Price per Pound
Example: The LME aluminum cash price was $2,872.55 per ton at the end of October 2025. This converts to a base price of $2,872.55 ÷ 2,204.62 ≈ $1.30 per pound.
The Total Landed Price (As of Oct 2025)
The Midwest Premium must be added to the LME price to determine the true landed price for U.S. buyers.
This premium can add $0.60 to $0.70 (~$0.65) per pound or more, making the effective cost significantly higher than the LME headline figure.
As shown in the figure below, the actual landed price for U.S. buyers mainly consists of the following two parts:
Aluminum Price Composition for U.S. Buyers (As of Oct 2025)
Market Context (As of Oct 2025)
The aluminum market has been trending upwards, reaching three-year highs due to supply constraints and strong demand from sectors like electric vehicles. The table below illustrates the recent price trajectory.
|
Date |
LME Spot Price (USD/lb) | Midwest Premium (USD/lb) | Total Landed Price (USD/lb) |
|
Oct 2024 |
~$1.16 | ~$0.61 | ~$1.77 |
| May 2025 | ~$1.19 | ~$0.65 |
~$1.84 |
| Oct 2025 | ~$1.30 | ~$0.65 |
~$1.95 |
Key Insight: The price you see on financial news is not the price you pay. The U.S. buyers pay the LME price plus regional premiums and, for alloys, additional costs based on chemical composition. This layered structure is fundamental to accurate budgeting.
A Breakdown by Alloy and Manufacturing Process (As of Oct 2025)
The price diverges significantly from the LME benchmark for the industrial alloys required for manufacturing. Cost is driven by alloying elements, production process, and availability.
The table below shows the typical price ranges for common aluminum alloys used in industrial manufacturing.
|
Alloy & Common Forms |
Typical Price (USD/lb) | Primary Manufacturing Use & Characteristics |
| Primary Aluminum Ingot | $1.30 – $2.00+ |
The base price, the upper limit of this range reflects the U.S. landed price. |
|
A380 Ingot |
$1.10 – $1.50 | widely used die casting alloy, achieving a balance between cost and castability. |
| A356/357 Ingot | $1.20 – $1.60 |
Premium heat-treatable casting alloy, used for high-strength structural parts. |
|
6061 Billet & T6 Plate |
$0.95 – $1.15 | High-strength structural alloy, used for extrusion, machining, and forging components. |
| 6063 Billet | $0.80 – $1.00 |
Standard alloy for architectural and structural extrusions; valued for its good surface finish. |
|
5052-H32 Sheet |
$0.70 – $0.90 |
A marine-grade sheet alloy with excellent corrosion resistance, formability, and weldability. |
Key Insight: A common mistake is to view all casting alloys as a low-cost option. In reality, premium, heat-treatable alloys like A356/357 are priced significantly higher than standard die casting alloys like A380, reflecting their superior strength and use in critical components.
The Critical Role of the Scrap Market (As of Oct 2025)
The secondary aluminum market, built on a robust recycling ecosystem, is fundamental to the industry’s economics.
As a result, scrap aluminum prices provide a clear, real-time indicator of material availability and cost pressure for both foundries and mills.
The following prices, sourced from the Rockaway Recycling, a major U.S. recycler, reflect the market value of clean, prepared scrap as of October 2025.
|
Scrap Category |
Rockaway Recycling Price (USD/lb) | Why the Price Varies |
|
Auto Rims (Clean) |
$1.00 | Highest Value: Known composition and high-quality casting alloy, ready for immediate reuse. |
| Clean Extruded Aluminum | $0.88 |
High Value: Clean and known chemistry makes it simple and cheap to recycle. |
|
Cast Aluminum (Clean) |
$0.68 | Value Depends on Purity: Common but with mixed elemental composition, the price will be higher when clean and free of impurities. |
| Aluminum Cans (UBC) | $0.70 |
High Volume but Lower Price: Too thin material with special properties, limiting its potential for recycling and reprocessing. |
| Sheet Aluminum | $0.66 |
Value Depends on Cleanliness: Must be clean. If mixed with iron, plastic, etc., it will depreciate significantly.
|
Key Insight: The market highly values quality. A common misconception is that scrap pricing is uniform. In fact, clean and well-classified scrap materials with known alloy properties have significant advantages over contaminated or mixed scraps. This quality difference directly affects the cost structure of secondary aluminum production.
Scrap Aluminum Auto Rims
Key Factors of Price Fluctuations
Aluminum pricing is influenced by a complex set of global factors (see table below) that procurement teams must monitor.
|
Key Factors |
Current Influence (As of Oct 2025) | Impact on Aluminum Prices |
|
Energy Costs |
Aluminum smelting remains a highly energy-intensive process, with electricity being the primary operational cost. | The fluctuation in the global energy market raises production costs, which in turn push up aluminum prices. |
| Supply & Demand | The demand for aluminum in electric vehicles and the aerospace industry remains strong, while supply is limited by China’s policies, including capacity control and low-carbon transformation. |
The structural gap between supply and demand maintains consistent upward pressure on aluminum prices. |
| Trade Policy & Tariffs | The U.S. maintains tariffs on aluminum imports, affecting trade flows and domestic availability. |
Tariffs increase the cost of imported aluminum, resulting in a sustained price premium for U.S. buyers compared to international benchmarks. |
Key Insight: Aluminum is not a stable and predictable commodity. Its price is influenced by global finance, energy markets, and geopolitics, requiring an active and informed procurement strategy.
Conclusion: Looking Beyond the Price
While primary aluminum costs around $1.30/lb ($1.95/lb landed), the true expense of your projects depends on more important factors: alloy selection, design optimization, and manufacturing efficiency.
At CEX Casting, we specialize in aluminum die casting and squeeze casting processes that transform raw material costs into a competitive advantage for you.
Our expertise in design for manufacturability and material strategy delivers optimal value beyond the initial material price.
The video below shows the workshop and production flow of aluminum squeeze casting at CEX Casting:
Aluminum Squeeze Casting Workshop
Contact us today to optimize the total cost with our specialized casting solutions for your next project.