The London Metal Exchange and your washing line

It’s not immediately apparent what affects the price and availability of everyday household items. Take your Aluminium Foldaway Washing Line for example. What if I said, “the London Metal Exchange has impacted the price of your washing line”. You’d no doubt reply, “Huh?  London metal who? Is that a heavy metal rock group?”

Nope. The London Metal exchange is the world’s marketplace for trading industrial metals. Steel, Aluminium, Copper, Nickel, Zinc …. you name the metal; it is bought and sold via the LME

Economics 101 explains the link between supply, demand and price. The LME is the place where the price of a metal is determined according to the supply and demand of that metal.

In April 2020, the price per ton of Aluminium was USD 1.421. In August it had risen more than USD300 to USD 1.754. Factor-in the depreciation of the Rand against the Dollar and it makes for a double-price-whammy for those manufacturers using Aluminium in their products.

Which brings me full circle from the LME and back to your great foldaway washing line. It is made from Aluminium and is weather-proof. Unfortunately it is not immune to increases in the Aluminium price or depreciating currencies.

A price increase on it’s way, probably by the beginning of September 2020, from R695 to around R750. Still great value when you think it will hang your washing for years and years and years ….. and years!!!