Rising raw material costs and growing demand for new energy jointly drive up aluminum prices in Shanghai

Driven by strong market fundamentals and rapid growth in demand in the new energy sector, the Shanghai futures aluminum market showed an upward trend on Monday, May 27th. According to data from the Shanghai Futures Exchange, the most active July aluminum contract rose 0.1% in daily trading, with prices climbing to 20910 yuan per ton. This price is not far from the two-year high of 21610 yuan hit last week.

The rise in aluminum prices is mainly boosted by two major factors. Firstly, the increase in the cost of alumina provides strong support for aluminum prices. As the main raw material of aluminum, the price trend of aluminum oxide directly affects the production cost of aluminum. Recently, the price of alumina contracts has risen significantly, with a staggering 8.3% increase last week. Despite a 0.4% drop on Monday, the price per ton remains at a high level of 4062 yuan. This cost increase is directly transmitted to aluminum prices, allowing aluminum prices to remain strong in the market.

Secondly, the rapid growth of the new energy sector has also provided important impetus for the rise in aluminum prices. With the global emphasis on clean energy and sustainable development, the demand for new energy vehicles and other products is constantly increasing. Aluminum, as a lightweight material, has broad application prospects in fields such as new energy vehicles. The growth of this demand has injected new vitality into the aluminum market, driving up aluminum prices.

The trading data of the Shanghai Futures Exchange also reflects the active trend of the market. In addition to the rise in aluminum futures contracts, other metal varieties have also shown different trends. Shanghai copper fell 0.4% to 83530 yuan per ton; Shanghai tin fell 0.2% to 272900 yuan per ton; Shanghai nickel rose 0.5% to 152930 yuan per ton; Shanghai zinc rose 0.3% to 24690 yuan per ton; Shanghai lead rose 0.4% to 18550 yuan per ton. The price fluctuations of these metal varieties reflect the complexity and variability of market supply and demand relationships.

Overall, the upward trend of the Shanghai aluminum futures market has been supported by various factors. The rise in raw material costs and the rapid growth in the new energy sector have provided strong support for aluminum prices, while also reflecting the market’s optimistic expectations for the future trend of the aluminum market. With the gradual recovery of the global economy and the rapid development of new energy and other fields, the aluminum market is expected to continue to maintain a steady upward trend.

Post time: Jun-13-2024
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