Under the influence of the tension between Russia and Ukraine, the international aluminum price hit a new high in 14 years, and the domestic and foreign aluminum prices have been inverted. In the absence of imported aluminum, the domestic inventory is low and the accumulated inventory is lower than expected. Many people in the industry reflect that the overall supply and demand structure is still tight this year, and aluminum prices are expected to remain high. Listed companies related to the aluminum industry chain are expected to benefit from rising aluminum prices.
Data show that international aluminum prices rose to the highest level since 2008. Aluminum prices on the London Metal Exchange (LME) reached $3,380 a ton at one point, approaching an all-time high.
The Russian-Ukrainian conflict is an important reason for the continued rise in global electrolytic aluminum market prices.
Russia is the second-largest producer of primary aluminum after China. Liu Xiaolei, director of the big data department of Shanghai Nonferrous Metals Network, said that Russia's own electrolytic aluminum production is more than 4 million tons, and Rusal is also one of the largest aluminum producers in the world, accounting for more than 5% of global output. The rise in aluminum prices caused by U.S. sanctions has also triggered some concerns in the market.
In addition, Russia is also one of the major energy suppliers in Europe. Due to the tension between Russia and Ukraine, Russia has cut off the supply of natural gas to Europe, resulting in the European energy crisis that has caused European aluminum smelters to reduce production. As the conflict between Russia and Ukraine intensifies, energy prices continued to soar, the market supply of European aluminum smelters continued to decrease.
Liu Xiaolei told the Financial Associated Press that due to the tense relations between Russia and Ukraine, the Beixi No. 2 project was put on hold, which in turn triggered a rise in natural gas in Europe and led to a rise in electricity prices. Many aluminum plants were forced to shut down production lines. Currently, nearly eight countries are involved, with more than 87 The production capacity of about 10,000 tons is limited.
Liu Xiaolei further said: "Around the fermentation of market sentiment and events, the impact of the Russian-Ukrainian conflict on the market will continue for a while."
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