Why Is the Price of Aluminum so High? -Aluminum Profiles Supplier
Author： WJW Aluminum Window Manufacturers
Why is the price of aluminum so high? WJW Aluminum Supplier Analysis: There are many reasons for the rise in aluminum prices. The following are the reasons why the price of aluminum is soaring. The price of aluminum materials is about $ 1,847/ton, which has doubled since the beginning of last year.
First of all, the European aluminum market is tight. Britain has accepted 35% import tariffs on Russia's delivery of aluminum in March.
Secondly, the production of raw aluminum production only increased in the Middle East and Asia with relatively low power costs.
Although many consumers are expected to alleviate this year, this is not the case. Finally, the price of aluminum changes every day. The target metal is traded on the London Metal Exchange. It is accompanied by premium and discount. Among these premiums, the LME aluminum premium is the largest. The premium represents the difference between the global price and regional price of aluminum. The premium is affected by the cost of logistics and supply and demand in the United States, but it is not directly related to the price of aluminum.
Nevertheless, investors can still buy aluminum stocks.
As China is the largest aluminum consumer country, the price of aluminum can rise or fall according to economic conditions. Although the market is in a period of economic growth, prices may fall during economic slowdown.
However, it is impossible to predict which party will lead to greater fluctuations and when metal will eventually find the bottom. The lower limit is necessary for the reversal of the bullish trend. Another reason for the decline of aluminum price grid in 1886 is that it is easier and cheaper to extract.
Because metal is rich and easy to extract, it is cheaper than gold. Compared with gold, the price of aluminum is also a decline in gold, which is an important catalyst for the rise of the industry. Aluminum is an excellent choice for construction projects.
In addition, aluminum is a reusable material. There are several reasons for aluminum that is still so popular. The production of aluminum is a carbon -intensive process. In China, more than 80% of aluminum is produced by coal -fired power generation.
In addition to climate issues, the price of aluminum is also expected to rise. According to the World Bank data, the average price of aluminum is expected to reach $ 2,050/ton in 2021, to $ 2,136/ton in 2022, and to $ 2,415/ton by 2035. These are the highest levels of the three organizations that have released these predictions, making it the most challenging thing for producers.
