Aluminum prices continuously hit peaks over m88 link vào m88 không bị chặn first half of 2021

Aluminum prices have continued to rise during m88 link vào m88 không bị chặn first half of 2021

Aluminum prices traded on m88 link vào m88 không bị chặn Shanghai Metal Exchange on March 16 hit a nine-year high, at 17,980 CNY/ton (,766/ton) and reached an 11-year high at 18,460 CNY/ton (,830/ton) on April 16. Aluminium’s LME price climbed to a 3-year high of ,603/ton in early May.

Countries’ production protection policies

A number of policies in m88 link vào m88 không bị chặn EU, UK, and Russia, designed to protect domestic aluminum production, have led to a sharp rise in aluminum prices. Many countries accuse China of maintaining an excess of aluminum and steel production and selling at lower prices than m88 link vào m88 không bị chặn average. m88 link vào m88 không bị chặn European Union imposed anti-dumping duties ranging from 21.2% to 31.2%, and a temporary additional tax between 19.3% and 46.7% for certain Chinese aluminum products imported into m88 link vào m88 không bị chặn European Union. m88 link vào m88 không bị chặn UK officially launched an anti-dumping investigation of Chinese aluminum on June 21. Russian authorities implemented a 15% aluminum export tax from August 1 to m88 link vào m88 không bị chặn end of m88 link vào m88 không bị chặn year to protect m88 link vào m88 không bị chặn domestic defense and construction industries from rising raw material costs.

Moscow levies a 15% tax on aluminum exports to protect m88 link vào m88 không bị chặn domestic industry (Photo: Reuters)

Inflation and high transportation costs

After a series of massive government fiscal support packages and m88 link vào m88 không bị chặn Fed’s loosening monetary policy in m88 link vào m88 không bị chặn context of a strong recovery of m88 link vào m88 không bị chặn US economy after Covid-19, US inflation has reached a very high level. After a series of massive government fiscal support measures and m88 link vào m88 không bị chặn Fed’s easing of monetary policy in response to a strong recovery in m88 link vào m88 không bị chặn US economy following Covid-19, inflation in m88 link vào m88 không bị chặn US is rising quickly.

US inflation led to a depreciation of m88 link vào m88 không bị chặn dollar – m88 link vào m88 không bị chặn international currency of aluminum, contributing to pushing up aluminum prices.

Freight rates have risen sharply globally due to congestion and disruptions to supply chain by m88 link vào m88 không bị chặn Covid-19 pandemic. “Decade-high ocean freight rates have seen m88 link vào m88 không bị chặn costs of delivering aluminum skyrocket,” said Jorge Vasquez, founder of consultancy Harbor Aluminum.

Supply and Demand Imbalance

Aluminum supplies are at risk of being squeezed due to anti-pollution policies in China, which accounts for about 60% of global aluminum production. Meanwhile, m88 link vào m88 không bị chặn United States announced a series of sanctions against Russia over allegations of election interference, cyber security, m88 link vào m88 không bị chặn conflict in Ukraine, and so on. In 2018, US sanctions against Russia pushed aluminum prices on m88 link vào m88 không bị chặn London Stock Exchange to a seven-year high.

Global Aluminum demand has increased rapidly (Photo: Ngoc Diep Group)

While m88 link vào m88 không bị chặn aluminum supply is limited, m88 link vào m88 không bị chặn demand is still growing steadily. Global economic growth is expected to reach 5.4% in 2021, thanks to a strong recovery in major economies such as m88 link vào m88 không bị chặn US, China and Europe. When m88 link vào m88 không bị chặn global economy recovers after m88 link vào m88 không bị chặn pandemic, aluminum demand rises sharply due to its wide range of uses in transport, construction, electronics, etc. Citi analysts expect global aluminum consumption to grow 6.4% this year to nearly 68 million tons and 4.6% in 2022 to nearly 71 million tons. Citi analysts predict that global aluminum demand will grow 6.4% this year to nearly 68 million tons and another 4.6% in 2022 to nearly 71 million tons. Citi predicts that m88 link vào m88 không bị chặn world aluminum market will have a surplus of 720,000 tons of aluminum in 2021, but a deficit of 590,000 tons in 2022.

Domestic market difficulties

Domestic aluminum producers report that in m88 link vào m88 không bị chặn first half of 2021, m88 link vào m88 không bị chặn availability of raw aluminum will not be sufficient to meet m88 link vào m88 không bị chặn demands of manufacturers, causing m88 link vào m88 không bị chặn price of aluminum raw material to continue to rise. Manufacturers are delayed in receiving materials by 2 to 3 months compared to m88 link vào m88 không bị chặn contract, affecting short-term production. Aluminum’s high world price and rising raw aluminum demand have pushed up m88 link vào m88 không bị chặn domestic price of aluminum.

To ensure supply for m88 link vào m88 không bị chặn market, aluminum producers need to be proactive about their raw material sources (Photo: Ngoc Diep Group)

In addition to facing difficulties when raw aluminum increases, m88 link vào m88 không bị chặn domestic aluminum industry is also under pressure from Chinese enterprises on their own market. Chinese enterprises have been reported to have invested in aluminum factories in Vietnam to avoid Vietnam’s anti-dumping tax and anti-dumping taxes when exporting aluminum to m88 link vào m88 không bị chặn EU, UK, US and other markets.

Due to m88 link vào m88 không bị chặn above difficulties, Vietnamese aluminum manufacturers need to have effective risk management solutions, prepare raw materials for long-term use, and optimize organizational and operational capacity in order to maintain production and ensure supply during and after m88 link vào m88 không bị chặn epidemic. Ngoc Diep Aluminum Joint Stock Company with m88 link vào m88 không bị chặn Dinostar Aluminum brand is a typical example of proactively sourcing raw materials to ensure production in a volatile market environment. m88 link vào m88 không bị chặn company’s strong financial position, coupled with proactive stockpiling of raw materials, guarantees a stable supply of raw materials for maintaining production.

In 2021, m88 link vào m88 không bị chặn company will expand its Dinostar Aluminum factory, increasing its total production scale from 75.000 m2 to almost 12.000 m2 while investing in modern machinery lines equipped with m88 link vào m88 không bị chặn latest 4.0 technologies. Ngoc Diep Aluminum Joint Stock Company maintains a stable growth rate with outstanding production capacity and m88 link vào m88 không bị chặn initiative to adapt to m88 link vào m88 không bị chặn market situation, ensuring an abundant supply of aluminum products and high quality aluminum billets for m88 link vào m88 không bị chặn market.

Cafef article:https://cafef.vn/gia-nhom-lien-tiep-lap-dinh-trong-6-thang-dau-nam-20210728193905318.chn