NEW YORK: For consumers and economists hoping the commodities inflation will soon subside, the aluminium market delivered some discouraging news on Monday.

       The world’s second-largest brewer, Heineken NV, said the rising costs of freight and the metal used in beer cans will have a “material effect” on profit next year.

       Reynolds Consumer Products Inc, the maker of the iconic Reynolds Wrap, said it was facing costs of about US$400mil (RM1.69bil) this year, driven in large part by aluminium and resin.

       The announcements come on the heels of a more than 30% gain in benchmark aluminium prices so far this year, with the metal on Monday approaching a decade high.

       The warnings were the latest in a host of cautionary signals from companies that underscored the potentially far-reaching impact of the surge in commodities from corn to steel.

       Further dimming prospects for a break from elevated aluminium prices is that years-long supply gluts are beginning to fade, with demand for low-carbon energy sources boosting demand for the lightweight material and top producer China cracking down on polluting industries such as metals producers.

       Goldman Sachs Group Inc is forecasting record prices above US$3,000 (RM12,676) a tonne by late next year.

       Aluminium is a versatile material integral to modern life. The metal is found in everything from soda cans to cell phones to window frames to airplanes.

       It weighs about one-third as much as steel or copper; is malleable, ductile, and easily machined and cast; and has excellent corrosion resistance and durability.

       The US aluminium industry generates more than US$70bil (RM295bil) a year in direct economic impact.

       When all suppliers and related business functions are taken into account, the industry drives nearly US$172bil (RM727bil) in economic impact. ― Bloomberg