Aluminum prices rising on higher demand & increasing production costs
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Update time : 2022-04-14 19:58:22
According to an estimate by the International Aluminum Institute (IAI), the global aluminum demand will grow by nearly 40%, mainly driven by the transportation sector, especially electric vehicles. The consumption of this sector was projected to rise by 59% to 31.7 million tons by 2030 compared to 2020.
Stimulated by the growing demand outlook and rising aluminum prices, aluminum producers will increase their capacity, and the previously idled capacity may be resumed.
In recent two years, the inventory level of aluminum ingots in China was often lower than the level in years before 2020, which indicated that the rebounded demand was supporting aluminum prices.
Moreover, China’s primary aluminum capacity was strictly controlled in 2021 under environmental issues, and the production was also decreased due to weather problems. Coupled with continuously increasing energy prices and higher production costs of primary aluminum, the European smelters have been cutting their production, so the international aluminum prices continue rising.
