Is the Price of the Aluminum Market Fluctuating Today?
Author： WJW Aluminum Window Manufacturers
Is the price of aluminum market fluctuating today? This is a question we often ask. Ask ourselves as an important question before buying any community. Today, we will look at the factors that affect aluminum prices, and how to manage your opening up. The energy use of aluminum accounts for about one -third of global production costs. Electricity in Europe has been rising, which has caused a bad environment for the World Aluminum Smoile Factory. Another main factor affecting the market price of aluminum is the global economy. Price is directly related to economic conditions, political and social conditions. With the rise of energy prices, this may increase demand for aluminum. Similarly, energy prices are directly related to the supply and distribution of aluminum. Moreover, with the rise of renewable energy and alternative fuels, the price of aluminum materials is more likely to remain flat or even rise. In the past few years, the average price of aluminum has been fluctuating. The spot price of LME aluminum was closed at 2,250 US dollars/metric ton in February 2020, the highest level since July 2008.
Nevertheless, it rises steadily in 2021 and will reach a three -digit level in 2022.
So, will aluminum prices continue to rise? Well, of course, although it is slow and inconsistent. The demand for metal depends on the socio -economic situation. In owed countries, demand increases with the increase of infrastructure investment. The changing economic pattern has also increased the production cost of aluminum. At a certain moment, the US dollar was weak relative to the RMB, making aluminum materials from China relatively cheap.
However, my country's economy will continue to grow in 2019, and China will continue to import a large number of aluminum next year. This may make the other parts of the world lack this material and increase the possibility of violent prices and soaring. The main reason for the rise in aluminum prices is that it is an efficient metal. Its thermal conductivity is also twice the copper, making it the first choice for electric transmission lines and batteries in electric vehicles.
Therefore, in order to meet this growing demand, the cost of aluminum is rising.
