Market Update: Aluminum Alloy Market

2021-04-30 17:40:18

The aluminum alloy market price has gained its upward momentum and has broken the 13 years' new height. We attribute this to the expectation of the US ambitious plans for infrastructure and the fear of global inflation.

In the past month, we have seen the weakening demand of both the domestic market of China and overseas buyers of aluminum profiles, particularly those for construction use. The weak demand in China is due to the tightening policies on property projects while the insufficient marine shipment capacity, comeback of pandemic and unstable polical situation in overseas countries and regions have further pushed the recovered demands into morass. Despite of these, the aluminum alloy market price index topped the height since 2008 in China. The export price for aluminum extrusion from China has exceeded USD3300 per ton. The only explanation seems to be the expected demand for the US infrastructure plans and the fear of devaluation of global currencies. The mainstream projection of the price peak is RMB20000 (about USD3100) per ton in the year. 

Our worry is that all the bubbles will break altogether as in the year 2008, where the disastreous history repeats itself somehow.