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Tuesday, June 06, 2006 

What does that have to do with the price of aluminum?

Raw material prices have gone up lately, especially for aluminum. Turning aluminum ore (bauxite) into usable metal is very energy intensive. Aluminum manufacturers use electricity to break the elemental aluminum out of the aluminum oxides.

If you've gassed up your car lately, you know that energy prices are up. So aluminum prices are up, too.

Does this affect Big Blue Saw's prices? Only a little bit. Parts made from thicker aluminum stock will cost more in raw materials, but those materials have higher cutting costs anyway. For example: a customer recently placed an order for a part made from 0.75" thick aluminum. His price was about $90. With the new aluminum prices, it would be about $94.

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