What drives the prices of aluminum? Why aluminum prices are so high? Where are aluminum prices going?
By Ruiqifeng Aluminum (www.aluminum-artist.com; www.rqfxcl.en.alibaba.com)
The price of aluminum profile is not fixed. It will fluctuate up and down. It may rise for a period of time and fall again after a period of time. What drives the prices of aluminum?
Aluminum profile price is rising and falling in accordance with the aluminum ingot price, and there will be some lag for the end customers. There are many factors affecting the aluminum ingot price, mainly are international factors and domestic factors. For example, war, energy crisis, epidemic situation, import and export policies, and inventory.
Another factor affecting the price of aluminum profiles is the alloy cost. For example, magnesium and silicon are the main alloy components of 6 series aluminum profiles. Although there are very few alloy in it, it still affect the aluminum price.
In addition, the processing cost will also affect the aluminum price. For example, the processing cost of homogeneous rods is higher than that of heterogeneous rods, and the price of aluminum rods will also be higher. When labor costs, processsing costs and operating costs are increasing, aluminum profiles costs are also increasing.I
In a word, aluminum profiles cost is mainly affected by the price of aluminum ingots, and the price of alloy elements and processing costs.
Where are aluminum prices going?
After the continuous decline from March to early July, the domestic and foreign aluminum prices began to stabilize and rebounded slightly. There are three factors driving the rebound of aluminum price: first, the market is optimistic about the slowdown of the Fed’s interest rate increase; Second, the European energy crisis have been rekindled, and the market’s expectation of the reduction of electrolytic aluminum production in Europe has increased; Third, after the introduction of the domestic real estate relief policy, the pessimism in real estate has been restored.
Post time: Aug-12-2022
