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Why aluminum prices are skyrocketing
In mid-August, the domestic alumina prices began to rise sharply, as of October 18, or up to 43.82%. We believe that the recent sharp rise in alumina prices rose mainly due to reduced imports, alumina plant due to accident shutdown, transportation and other factors.
1.raw material costs move up
Affected by environmental protection, supply side reform and other effects, caustic soda, coal prices rose sharply, the recent increase in the cost of alumina raw materials.
2.mports to reduce the supply and demand balance bias
Demand for alumina With the steady increase in electrolytic aluminum production, the domestic alumina imports have declined, leading to the domestic alumina market in short supply phenomenon.
3.alumina inventory transfer
In early August when the price of alumina in the stage of low, the occurrence of alumina inventory transfer, the majority of alumina sold to the electrolytic aluminum business, alumina enterprises to ease their own inventory, and then combined with the initial price traders involved in receiving goods, the market can be negotiable Supply significantly narrowed, resulting in market tension.
4.the accident led to two alumina plant shutdown
In Early August alumina prices close to the enterprise cost line, but in Shanxi, Henan two alumina plant due to accident cut off stimulation, alumina prices usher in vitality.
Due to the recent tight transport of rail transport in Shanxi, leading to blocked transport of alumina, and the recent restrictions on Qiyun also make alumina transport costs increase, pushing up the market tension in the alumina market.
6.alumina plant reluctant to sell significantly
September alumina pushed up sharply, the seller's market also will be established, the market prices have often jumped up, alumina companies have said that the factory is in a low inventory state, alumina plant reluctant to sell significantly, in this case the alumina plant to increase the offer.