Aluminum prices have hit their highest price in four years as tariffs, shipping costs, supply concerns, increased demand, and logistics issues have all converged to put stress on the supply chain.
Geopolitical events have driven up fuel costs, raising inflation and price tags in many industries. Aluminum prices have been hit hard, with Section 232 tariffs currently at 50 percent.
In May 2025, aluminum costs were averaging $1.49 a pound. In May 2026, the average was $2.83 a pound, marking a 90% increase in just one year. Jamie Barron, Vice President at New Source Corporation, calls the situation a “perfect storm” for high metal prices.
Feeling the Squeeze of Aluminum Prices
High aluminum costs are impacting companies across the aerospace sector, including manufacturers, distributors, suppliers, wholesalers, and retailers who have needed to pass increased costs onto their customers.
Many companies inform customers of the reasons behind the price increases. For the most part, they understand the predicament companies are facing. “All these external factors have caused a lot of trickle downstream. It’s not even just metal—we are seeing inflation across the board” Barron said.
Getting the Best Prices Through Planning and Communication
There are relatively few true stocking distributors in the extrusion aluminum and aerospace metals industry. New Source Corporation is one such distributor—meaning they stock and store inventory for customers on site at either their Orlando, FL or Fullerton, CA facilities. With services like vendor-managed inventory, New Source can house and manage customer orders for months or even years in advance, locking in your price and holding materials in stock until you need them. With just-in-time delivery, orders are fulfilled on your schedule, and you don’t pay until they ship.
“It’s very important to plan ahead as a supplier. We coordinate your vendor-managed inventory, keep items in stock, and schedule your mill orders or your deliveries out for outlying months or years,” according to Barron.
Communication with your supplier is key. They can work with you on forecasting and planning to help you get the best prices. They’ll also manage lead time and availability so you’ll have your materials when you need them.
Barron explains that while many of their customers take advantage of their stocking services, there are more who could. “If you could lock in a price and not have to worry about being late on material or not worry about uncertainty in the market, why wouldn’t you do that?”
Prices are likely to continue to rise, so New Source recommends that customers plan ahead and do what they can to mitigate risks on material costs, availability, and lead times. With the right strategy, you can protect your supply chain and stay ahead of the competition.
Do you have questions about vendor-managed inventory or just-in-time shipping? Let’s talk about how we can support you in planning and stocking the materials you need. Contact us today.