Market Update: Aluminum Alloy Market

2021-06-10 17:31:13

Stagnant aluminum alloy price in the past two weeks seems to conceal another round of fierce soar in the near future. According to China National Reserve Bureau, it has been releasing non-ferrous reserve to the market in the recent two months. Yet, the aluminum alloy price only retrieves to the start point where the last historical height begun and refuses to go down further. We attribute this to the strong wait-and-see atmosphere in the market since the position of aluminum futures (of Shanghai Futures Exchange) does not shrink either. Meanwhile, the administrations in charge has remained silent to the still high market price since the successive opponent statements in last month.

On the other hand, US dollar remains week against RMB, narrowly fluctuating between 6.4-6.3. On the contratry, marine shipment cost has risen to a new height. It's been over USD11,000 per 40' container from South China to West Africa or South America, contributing 200-300% profit growth to major shipping companies.

Together with the stringent pandemic situation in most regions, importers of China aluminum profiles have lost their enthusiasm in March or April. We have to say the worse is still on the way.