In the first week of December, the price of aluminium showed a sharp increase, rising from the average price of 21,440 on November 28th to 22,080. The overall price rose by about 640 yuan per ton, reaching the highest level in the past three years and breaking through the high of 22,000 yuan for aluminum prices.
This week, the price of A00 aluminum ingots rose strongly, with the core logic focusing on the resonant effect of the tight balance between supply and demand and the favorable macro conditions. The supply side is strictly constrained by the 45 million tons capacity red line, with the operating capacity approaching full capacity. Coupled with the high proportion of direct supply of molten aluminum and the scarcity of deliverable aluminum ingots, the supply has completely lost its elasticity. The demand for emerging fields such as new energy vehicles and photovoltaic energy storage has exploded on the demand side. Coupled with the year-end stockpiling rush, the low inventory situation has further supported prices. The rising expectations of the Federal Reserve cutting interest rates and the weakening of the US dollar in the macro environment have provided a key catalyst for the upward movement of aluminum prices. Multiple core factors have jointly driven the price to break through the recent high.
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