What Factor Causes an Increase in Aluminum Prices? Factory Analysis-Aluminum Profiles SUPPLIER
Author： WJW Aluminum Window Manufacturers
What factor has caused an increase in aluminum prices? Factory analysis. We all know that aluminum is a product with a large market supply and demand. Since the fourth quarter of 2021, the power cost of aluminum production is higher than the current LME spot price. At the same time, the interruption of alumina supply from Ukraine has recently hit Russia's producer Russia. These factors are combined with the tension of aluminum supply in other regions and countries, which has pushed up the price. What factor has caused aluminum prices to rise? Analysis of aluminum manufacturers made an analysis: First, aluminum is seriously dependent on electricity. According to data from the United States Aluminum Trade Group, in the United States, power costs account for 30%of aluminum prices, while China accounted for almost 50%.
Secondly, aluminum needs a lot of energy compared to other products. In China, aluminum production accounts for 2%of the global energy consumption.
Second, demand rises again. By 2022, the global demand for aluminum is expected to increase by 3% to 4%. The recovery of global automobile production, European construction projects, and the continuous increase in the use of renewable energy equipment have continuously promoted the demand for metals.
If these trends continue, aluminum prices may rise in the next few years. So what are the reasons for aluminum prices? If you want to know how to predict the future of aluminum prices, please consider these factors.
Third, the supply is tight, and it will always be the case before the improvement of the supply in China. This has led to rising supply of supply and raw materials. At present, aluminum prices are expected to reach $ 3,000 per ton in a few months. The average price is about $ 2770 to $ 2,900 per ton. In recent months, aluminum prices have risen sharply, but some factors may prevent further rise. It should also be noted that China's aluminum supply is limited, which means that metal prices may rise further. The latest sanctions on the United States on Russia led to a significant increase in aluminum prices. At the time, people were worried that sanctions would affect Russia's aluminum, but with the upgrading of tensions around Ukraine, these concerns have faded. The threat of sanctions on Russia has been reflected in the market, but further measures may make the situation even more tense. With the upgrading of the tension around Ukraine's conflict, the potential sanctions imposed on the country may lead to further increase in metal prices.
The above is the analysis of aluminum manufacturers' "reasons for the rise in aluminum prices". For more information about aluminum profile, please pay attention to WJW Aluminum Supplier.
