Since the beginning of 2021, The price of aluminum ingots has soared.Let us aluminum manufacturer's heart has been tight, aluminum ingots price again and again to refresh the record, Also let us again and again dumbfounded.So what's causing the price change? We're going to do that today.
Aluminum has become an indispensable metal in our daily life. Its price fluctuation is affected by a variety of factors, the main factors are as follows:
1. The international political and economic situation is also an important factor affecting the price of aluminum. The changes of international and domestic aluminum policies will affect the price of aluminum.
2. nventory is another important factor affecting aluminum price. Enterprises will take different measures to increase or decrease inventory in different market environments to ensure raw materials needed for production and to recover capital turnover; the government will also use reserves to regulate aluminum market in different periods.
3. The output of aluminum is greatly constrained by technology, equipment and resources, and generally grows slowly. However, once there is a breakthrough in technology or the discovery of new aluminum ore, the output will increase greatly, thus affecting the relationship between supply and demand.
4. Aluminum is widely used and can replace other materials, but aluminum can also be replaced by other materials, such as plastic, wood or some new materials can replace aluminum in some occasions, so the promotion and application of these aluminum substitutes will also affect the price of aluminum.
5. Since import and export account for a certain proportion of domestic supply and demand, changes in import and export caused by exchange rate fluctuations or other reasons will also affect the supply and demand of aluminum.
6. The smelting of aluminum requires a large amount of power resources, so the level of electricity charges affects the cost of refining and aluminum, thus affecting the price of aluminum.
The above 6 points are the main factors affecting the price of aluminum ingot, so aluminum ingot price rise is not overnight, it is caused by a variety of different complex factors.
