Aluminum prices exceeded 16000CNY is imperative behind the mystery


In 6th June , 13580 yuan to 7th August , 14750 yuan rise 1170 yuan, rising costs will soon lead to a large number of domestic aluminum related enterprises closed tide, then why the aluminum ingot price rise?

The mystery behind the rise in aluminium prices

1, key words: power coal

As one of the production cost of aluminum, coal is affected by many factors such as transportation reform and the performance of the most intense, the price by 300 yuan / ton low rebound to more than 589 yuan / ton, and short-term supply growth is still limited, so that the plant operating losses continue to expand, has become an important topic of increased electricity market.

2, key words: Freight

Transportation costs have increased, and new road and rail deals have pushed up the cost of aluminium transportation. Xinjiang Railway Bureau issued the adjustment of the four quarter freight prices notice, the discount will be reduced from 15% to 8%, equivalent to the current freight increased by 35 yuan / ton.

3, key words: domestic hot money

Domestic speculative hot money, real estate was sniper, the new deal suppressed the property market, hot money fled, fought to hoard commodities. China’s hot money has shocked the world by speculation about commodities. Aluminum prices soaring behind, although there are many basic factors, but the greater part is due to the “hot money” in “forced inflation.””.

4, key words: supply side reform boost aluminum prices

In April this year, the national development and Reform Commission and other four ministries launched a rectification of the electrolytic aluminum industry illegal project special action. The special action focus on four key elements, respectively: (before May 15th) corporate self-examination, where verification of (before June 30th), special checks (completed in September 15th), to urge the rectification (before October 15th).

The second half of 2017 will speed up the implementation of the policy. As of July, electrolytic aluminum supply side reform has affected 3 million 950 thousand tons of capacity. With the electrolytic aluminum industry to speed up the reform of the supply side, permit issuance, verification and other factors of future owned electricity accumulation, if the capacity to go to reach 3 million tons to 5 million tons, then deduct the zombie capacity and heating season of production, the corresponding demand of about 35 million tons in 2017

Supply expectations will tend to be tight balanced and may even be in short supply. From the cost point of view, about 80% of the cost of electrolytic aluminum, the main raw materials, alumina, coal prices are also rising, rising costs of electrolytic aluminum prices, industry profits improved.