Why the aluminum price is keeping rising in China in recent days?

According to Shanghai Metal Market (SMM), the aluminum ingot price on December 1 was 16,980 CNY/ton (2576 USD/ton), which was an increase of 12.9% from the 1,040 CNY/ton aluminum ingot price on November 1 at the beginning of the month; Compared with the beginning of the year, the price of aluminum ingots (January 2) was 14,570 CNY/ton (real-time exchange rate was 2092 USD/ton), which was 16.54%; compared with the average market price during the year (March 24), 11210 CNY/ton (real-time exchange rate) 1578 USD/ ton), an increase of 51.47%.

There are many reasons why China's aluminum prices continue rising  this year. From the perspective of supply and demand, China's consumption did not decline significantly during the epidemic. Driven by industries such as automobiles, home appliances, and photovoltaics, industries such as industrial profiles, primary aluminum alloys, and aluminum sheet, strip and foil processing performed well. Demand. However, due to the impact of the epidemic on the supply side, the aluminum raw materials exported to China have decreased significantly compared with the same period in previous years. The reduction in the import of primary aluminum and scrap aluminum has caused the current low inventory of primary aluminum in China, and the supply will be in short supply in the future. Increased demand and insufficient supply have caused aluminum prices to continue to rise, resulting in a persistently high situation.

Therefore, although the supply side continues to increase volume, the relative shortage of supply and demand in the aluminum industry cannot be changed for the time being. If there is no large import of aluminum raw materials to supply the market, aluminum prices may continue to remain high in the future.