High Aluminum Prices: Impact from Strong Demand cổng game m88 China and US Bans

High demand from various industries combined with import restrictions, aluminum trading from Russia, along with global supply constraints, has led to a significant increase cổng game m88 aluminum prices cổng game m88 the international market since the beginning of 2024.

Aluminum Prices Peak

At the close of trading on March 28th on the London Metal Exchange, the three-month aluminum price rose to ,337.5 per ton, the highest level since the beginning of 2024. cổng game m88 the first half of April 2024, aluminum prices continued to rise and exceeded the ,700 per ton mark, the highest level cổng game m88 nearly 2 years.

The aluminum trading price reached a point exceeding ,700 per ton cổng game m88 April 2024 (Source: investing.com).

Supply Pressure from Bans and Production Cuts

According to official information from the US Department of the Treasury, on April 12th, the US and UK jointly issued two new regulations aimed at reducing Russia’s revenue from aluminum, copper, and nickel exports. This measure prohibits the import of aluminum, copper, and nickel originating from Russia into the United States and limits the use of these metals on global commodity exchanges and centralized derivatives trading. Metal exchanges such as the London Metal Exchange (LME) and the Chicago Mercantile Exchange (CME) will be prohibited from trading new aluminum, copper, and nickel from Russia. Russia is the world’s second-largest aluminum producer, so banning imports and restricting aluminum trading from Russia could lead to a shortage of supply cổng game m88 the international market, significantly impacting aluminum prices.

Additionally, investment research firm UOB Kay Hian has stated that aluminum inventories at the London Metal Exchange LME are relatively low, at around 549,000 tons by the end of 2023. At the same time, aluminum inventories cổng game m88 China are also only about 434,000 tons, with no significant imports and aluminum output negatively affected after production cổng game m88 Yunnan province was cut cổng game m88 the fourth quarter of 2023.

Supply Tightening Pressure on Aluminum Prices

Furthermore, on March 15th, the world’s 8th largest aluminum producer, Alcoa, announced a reduction cổng game m88 production at its Portland aluminum plant cổng game m88 Victoria, Australia, due to production instability. Production at this plant will decrease to about 75% of its total capacity of 358,000 tons per year. At the same time, Alcoa also officially announced the closure of the Kwinana alumina refinery cổng game m88 Western Australia cổng game m88 January 2024 due to difficult market conditions and outdated infrastructure. Both of these actions have led to a significant reduction cổng game m88 Alcoa’s aluminum production and put pressure on aluminum prices.

Increased Demand Growth from China

According to analysis from Citi Research, high demand for aluminum cổng game m88 solar energy projects and electric vehicles will help maintain high aluminum prices cổng game m88 China, the world’s leading aluminum consumer. cổng game m88 the first two months of 2024, solar installation projects cổng game m88 China generated 36.7 gigawatts of electricity, an 80% increase from the same period last year and exceeding market expectations. New electric vehicle sales cổng game m88 China reached 1.765 million units cổng game m88 the first quarter of 2024, up 34% from the same period last year. Both of these factors indicate a high demand for aluminum.

Citi Research forecasts that the renewable energy sector will be the main driver of aluminum demand cổng game m88 China cổng game m88 2024.

Fields such as green materials and energy infrastructure, driven by China’s carbon emission reduction goals and pollution control efforts, will also contribute to increasing aluminum demand cổng game m88 the country.

Furthermore, the US Federal Reserve’s expected interest rate cuts may accelerate the global aluminum demand recovery. This is seen as a crucial factor cổng game m88 boosting aluminum prices cổng game m88 the world market.

Challenges for Domestic Aluminum Enterprises

Ngoc Diep Corporation proactively manages risks and enhances reserves to cope with aluminum price fluctuations cổng game m88 the international market (Image: Dinostar Aluminum Plant).

The global aluminum market strongly impacts the domestic aluminum market and aluminum manufacturing businesses. Dependence on imported raw materials makes domestic aluminum prices directly affected by international aluminum price fluctuations, leading to higher domestic aluminum prices. cổng game m88 addition to input cost pressures, domestic aluminum manufacturers also face price competition and market share from Chinese enterprises investing cổng game m88 Vietnam. To cope with these challenges, Ngoc Diep Corporation has proactively implemented risk management measures, increased input material reserves to reduce dependence on imports, and better cope with aluminum price fluctuations cổng game m88 the international market. These efforts have helped the Dinostar Aluminum brand of Ngoc Diep Corporation maintain its leading position cổng game m88 the domestic aluminum industry and ensure stable supply for the domestic market while maintaining business growth.