SunSirs--China Commodity Data Group

Sign In

Join Now

Contact Us

Home > Aluminum News > News Detail
Aluminum News
SunSirs: The Aluminum Price Fluctuated Sideways Widely in the First Ten Days of February
February 14 2023 09:38:17SunSirs(John)

The aluminum price fluctuated sideways widely

According to the data of SunSirs, the average price of domestic aluminum ingots in the East China market on February 10, 2023 was 18,583.33 RMB/ton, down 2.09% from the aluminum price of 18,980 RMB/ton at the beginning of the month (February 1). After the aluminum price recovered in January, it was basically in a stage of long and short stalemate in February, with a wide range of sideways shocks.

In the long run, the price had dropped considerably, and the average market price of aluminum ingots rose by 6.49% compared to the price of 17,450 RMB/ton at the beginning of the recent recovery (July 14, 2022). The recent high price of aluminum appeared on December 5, and the average market price of aluminum ingots was 19,536.67 RMB/ton, the current price was a decrease of 4.88% from the recent high price.

The aluminum price fluctuated widely in February, and the main factors for the decline were:

1. The expectations of supply increase was strengthened

The supply increase was expected to strengthen, and the production resumption plan of Guizhou Province to reduce production capacity had been put on the agenda. The time for enterprises to resume production varied from late February to early April. The electrolytic aluminum production in Sichuan Province had resumed to nearly 70%, and Linfeng Aluminum Power had also resumed production; The news of production reduction in the early stage had not come to the ground yet, and the previously rumored power shortage in Yunnan would drive the electrolytic aluminum enterprises to increase the scale of production reduction by 0.6-0.8 million tons had not been fulfilled in time.

2. Cost support was weakened

The cost support was weakened, the price of alumina was basically stable, the price of anode in February was reduced by 660 RMB/ton month on month, and the price of thermal coal was down.

3. Factory inventory was large

The accumulated inventory before and after the Spring Festival was in line with market expectations, but the factory had a large inventory; As of February 9, the social inventory of electrolytic aluminum increased by 173,000 tons to 1,188,000 tons from the end of January, which was in the normal accumulation range; However, compared with the end of January, the factory warehouse increased by 35,000 tons to 233,000 tons, higher than the previous year's level. Delivery pressure was concentrated on the manufacturer.

4. Downstream consumption was lower than expected

After the Lantern Festival, the consumption was less than expected, the terminal construction was average, and the relevant new orders were average.

Market outlook

After the wide fluctuation of aluminum prices, there is a trend of jumping out of the operating range. It is expected that there will be little room to continue to decline in the short term. In the evening trading of the 10th day, affected by the reduction of Russian crude oil production, please wait and see whether the exploration of crude oil prices could drive the enthusiasm of futures speculation.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com

Exchange Rate:

8 Industries
Energy
Chemical
Rubber & Plastics
Textile
Non-ferrous Metals
Steel
Building Materials
Agricultural & Sideline Products