China Aluminium Network
China's Domestic Aluminum Price Move in Uptrend
Edited by : AL CIRCLE
1 min read
The industrial distribution of aluminum manufacturing enterprises has moved to the West. With the application of captive power plant, the real production cost of aluminum ingots was lower than market expectation. Since captive power plants occupied large ratio, production cost was up only 1-1.3%. Shandong Xinfa and Henan Shenhuo have built power-aluminum integration base in the West area, realizing the reduction of electric power cost.
Thus, as the current electrolytic aluminium production cost, still remained over 1500 yuan profits for each ton, Aluminum production market with low entry threshold as the perfectly competitive market, certainly will attract more competitors to this market under such high profits. Capacity expansion may to be fiercer in the future, to limited aluminum price fundamentally.
According to the experts, domestic aluminum price was moving in an uptrend which was related to the market expectation, while the market expectation was derived from the intensive up-regulation power price. In terms of the market reaction, aluminum production cost was highly overrated.
Thus, as the current electrolytic aluminium production cost, still remained over 1500 yuan profits for each ton, Aluminum production market with low entry threshold as the perfectly competitive market, certainly will attract more competitors to this market under such high profits. Capacity expansion may to be fiercer in the future, to limited aluminum price fundamentally.
According to the experts, domestic aluminum price was moving in an uptrend which was related to the market expectation, while the market expectation was derived from the intensive up-regulation power price. In terms of the market reaction, aluminum production cost was highly overrated.
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