Aluminum prices continuously hit peaks over m88 m thể thao first half of 2021

Aluminum prices have continued to rise during m88 m thể thao first half of 2021

Aluminum prices traded on m88 m thể thao 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 m thể thao 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 m thể thao average. m88 m thể thao 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 m thể thao European Union. m88 m thể thao 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 m thể thao end of m88 m thể thao year to protect m88 m thể thao domestic defense and construction industries from rising raw material costs.

Moscow levies a 15% tax on aluminum exports to protect m88 m thể thao domestic industry (Photo: Reuters)

Inflation and high transportation costs

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

US inflation led to a depreciation of m88 m thể thao dollar – m88 m thể thao 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 m thể thao Covid-19 pandemic. “Decade-high ocean freight rates have seen m88 m thể thao 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 m thể thao United States announced a series of sanctions against Russia over allegations of election interference, cyber security, m88 m thể thao conflict in Ukraine, and so on. In 2018, US sanctions against Russia pushed aluminum prices on m88 m thể thao London Stock Exchange to a seven-year high.

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

While m88 m thể thao aluminum supply is limited, m88 m thể thao 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 m thể thao US, China and Europe. When m88 m thể thao global economy recovers after m88 m thể thao 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 m thể thao 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 m thể thao first half of 2021, m88 m thể thao availability of raw aluminum will not be sufficient to meet m88 m thể thao demands of manufacturers, causing m88 m thể thao price of aluminum raw material to continue to rise. Manufacturers are delayed in receiving materials by 2 to 3 months compared to m88 m thể thao contract, affecting short-term production. Aluminum’s high world price and rising raw aluminum demand have pushed up m88 m thể thao domestic price of aluminum.

To ensure supply for m88 m thể thao 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 m thể thao 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 m thể thao EU, UK, US and other markets.

Due to m88 m thể thao 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 m thể thao epidemic. Ngoc Diep Aluminum Joint Stock Company with m88 m thể thao Dinostar Aluminum brand is a typical example of proactively sourcing raw materials to ensure production in a volatile market environment. m88 m thể thao 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 m thể thao 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 m thể thao latest 4.0 technologies. Ngoc Diep Aluminum Joint Stock Company maintains a stable growth rate with outstanding production capacity and m88 m thể thao initiative to adapt to m88 m thể thao market situation, ensuring an abundant supply of aluminum products and high quality aluminum billets for m88 m thể thao market.

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