5 thoughts on “Why did the price of aluminum ingots rise sharply in 2021?”
Harry
This is mainly related to the current industrial structure of the mining industry, and it also has a lot to do with the current global economic development. If you want to answer this question in detail, I guess an endless paper. I will try to talk about this question from the following three perspectives. Although it is not necessarily comprehensive, I will try to try from multiple perspectives as much as possible. Analysis of the root cause of this problem: 1, the first question is about the price increase of commodities. The aluminum ingot itself belongs to the commodity. Because the new crown epidemic has not been effectively curbed globally, the economic development in many regions still has resistance, which will lead to rising commodity prices in all regions, and aluminum ingots are one of them. 2, the second question is about the current freight costs, because many ports are not open normally now, and the shortage of containers in sea transportation leads to further increase in prices of commodities. This is mainly focused on transportation issues. 3, the third question is about industrial upgrading, because there are conflicts in the new energy industry and traditional industries, and the development of traditional industries itself also has a lot of problems. . The commodities are all rising. As I said above, as long as the new crown epidemic has not been completely controlled, and the global economy has not been recovered normally, all commodities will increase prices. Note. Although the price of aluminum ingots does not have so much increase, it is still at a high position in a short time, which also requires the related industries to further optimize and upgrade to reduce various costs. . There are also problems with freight costs and industrial upgrading. The problem of freight costs is mainly focused on sea transportation. From a global perspective, for those pure importing countries, because the cost of shipping has risen further, many ports of ports have even turned 10 times. Regardless of any commodity, pure imported goods are now increasing. At the same time, the mineral industry has not carried out enough industrial upgrading, which will make it difficult for the production capacity of related products to meet global demand, and then prices have skyrocketed.
Supply side: Domestic capacity ceiling in the context of carbon neutral and background may be less than 44 million tons of everyone's expected. At present, 4,000 is completed, and 400 to be invested. -43 million tons have reduced the 44 million tons of market expectations. Consumption side: Two points are worthy of attention: the processing costs of aluminum rods and aluminum rods in one place are obviously repaired compared to previous, proved that high aluminum prices have gradually passed downstream. Obviously declined, the recent exfoliation of aluminum ingot club has obviously de -proof that the inventory turning point has gradually come, and the most intuitive indicator of aluminum prices is inventory. The obvious exfoliation of previous inventory is accompanied by the sharp rise of aluminum prices. Comprehensive supply and demand and inventory judgment, as the inventory is reappeared, aluminum prices may still have strong motivation.
This is because the demand for this material has continued to expand, but the output is not particularly high, so the relationship between supply and demand is not balanced, which has led to a sharp rise in aluminum ingots.
It is mainly because the cost of production before this thing is not high, and it is also produced relatively fast. Of course, it is also very convenient to produce, but this year is not easy to produce, and the product cost of production is more than previous years. So this price has been rising.
Because of the influence of the epidemic, the logistics and production of aluminum materials were affected. It is precisely because of this that the output of aluminum materials is relatively low, so it will lead to rising aluminum prices.
This is mainly related to the current industrial structure of the mining industry, and it also has a lot to do with the current global economic development.
If you want to answer this question in detail, I guess an endless paper. I will try to talk about this question from the following three perspectives. Although it is not necessarily comprehensive, I will try to try from multiple perspectives as much as possible. Analysis of the root cause of this problem:
1, the first question is about the price increase of commodities. The aluminum ingot itself belongs to the commodity. Because the new crown epidemic has not been effectively curbed globally, the economic development in many regions still has resistance, which will lead to rising commodity prices in all regions, and aluminum ingots are one of them.
2, the second question is about the current freight costs, because many ports are not open normally now, and the shortage of containers in sea transportation leads to further increase in prices of commodities. This is mainly focused on transportation issues.
3, the third question is about industrial upgrading, because there are conflicts in the new energy industry and traditional industries, and the development of traditional industries itself also has a lot of problems.
. The commodities are all rising.
As I said above, as long as the new crown epidemic has not been completely controlled, and the global economy has not been recovered normally, all commodities will increase prices. Note. Although the price of aluminum ingots does not have so much increase, it is still at a high position in a short time, which also requires the related industries to further optimize and upgrade to reduce various costs.
. There are also problems with freight costs and industrial upgrading.
The problem of freight costs is mainly focused on sea transportation. From a global perspective, for those pure importing countries, because the cost of shipping has risen further, many ports of ports have even turned 10 times. Regardless of any commodity, pure imported goods are now increasing. At the same time, the mineral industry has not carried out enough industrial upgrading, which will make it difficult for the production capacity of related products to meet global demand, and then prices have skyrocketed.
Supply side: Domestic capacity ceiling in the context of carbon neutral and background may be less than 44 million tons of everyone's expected. At present, 4,000 is completed, and 400 to be invested. -43 million tons have reduced the 44 million tons of market expectations. Consumption side: Two points are worthy of attention: the processing costs of aluminum rods and aluminum rods in one place are obviously repaired compared to previous, proved that high aluminum prices have gradually passed downstream. Obviously declined, the recent exfoliation of aluminum ingot club has obviously de -proof that the inventory turning point has gradually come, and the most intuitive indicator of aluminum prices is inventory. The obvious exfoliation of previous inventory is accompanied by the sharp rise of aluminum prices. Comprehensive supply and demand and inventory judgment, as the inventory is reappeared, aluminum prices may still have strong motivation.
This is because the demand for this material has continued to expand, but the output is not particularly high, so the relationship between supply and demand is not balanced, which has led to a sharp rise in aluminum ingots.
It is mainly because the cost of production before this thing is not high, and it is also produced relatively fast. Of course, it is also very convenient to produce, but this year is not easy to produce, and the product cost of production is more than previous years. So this price has been rising.
Because of the influence of the epidemic, the logistics and production of aluminum materials were affected. It is precisely because of this that the output of aluminum materials is relatively low, so it will lead to rising aluminum prices.