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/Which factor would affect the aluminium ingot price?

Which factor would affect the aluminium ingot price?

2021-02-26

1. Supply and demand

The relationship between supply and demand directly affects the market pricing of commodities. When the relationship between supply and demand in the market is in temporary equilibrium, the market price of the commodity will fluctuate in a narrow range.When supply and demand are out of balance, prices can fluctuate dramatically.In the futures market for aluminum, investors can focus on one indicator of changes in the supply and demand relationship -- inventories.

2. Supply of alumina

The cost of alumina is about 28-34% of the cost of aluminum ingot production.Because the international alumina market is highly concentrated, with most of the world's alumina (80-90%) sold through long-term contracts, very little alumina is available on the spot market.In recent years, China's expanding production of electrolytic aluminium has led to rising domestic demand for alumina, with about two-thirds of imported alumina now bought on the spot market.China purchases alumina in large quantities on the international market, which directly promotes the international alumina price to rise sharply.

3, the impact of electricity price

Electrolytic aluminum industry is also known as "electric tiger" industry. At present, the average power consumption of aluminum ton in domestic and foreign aluminum plants is controlled below 15,000 kWh /t.The experience of aluminium ingot production in western countries shows that when electricity exceeds 30% of the cost of aluminium production, it is considered dangerous production.

However, since China is an energy-short country, the average electricity price of aluminum suppliers has risen to more than 0.355 yuan/kWh for several times due to the increase of electricity price, nearly 4 cents/kWh higher than in 2003, which means that the production cost of aluminum enterprises has increased by 600 yuan per ton.Therefore, the power factor not only affects the production of electrolytic aluminum in China, but also affects the domestic and international aluminum market price.

4. The impact of the economic situation

Aluminum has become an important non-ferrous metal species, especially in developed countries or regions, aluminum consumption has been highly related to the development of the economy.When the economy of a country or region develops rapidly, the consumption of aluminum will also increase synchronously.Similarly, the economic recession will lead to a decline in aluminum consumption in some industries, which in turn will lead to fluctuations in aluminum prices.

5, the influence of aluminum application trend changes

Automotive manufacturing, construction engineering, wire and cable and other major industries in the use of aluminum ingots and the amount of change, will have a significant impact on the price of aluminum.



 
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