This week, the price of aluminum plummeted. There were two days this week with a single-day drop of more than USD170, which was once close to the limit. Buyers from all parties in the international market are now very concerned about the situation of aluminum raw materials. What is the reason for the price plummet? There are several reasons:
1, The Chinese government has guided coal prices to return to a reasonable range to ensure a safe and stable supply of energy. The fall in coal prices has weakened the cost support of aluminum prices, which is the main reason for the decline in aluminum prices;
2, At present, the consumption in the international market is weak, and the operating rate of processing enterprises is low, which is a drag on the further rise;
3, The accelerating pace of the accumulation of international aluminum ingot inventories and the continued downturn in consumption have dragged down the rise in aluminum prices, and aluminum prices have experienced a phased correction.
4, Although China's domestic coal supply can be regulated by policies, the energy tensions in the international market have not been eased, and aluminum prices are expected to remain high and fluctuate.
