Spot aluminum prices continue to fall on the 27th

On October 27, the average price of domestic aluminum ingots in the East China market was 20,610 yuan/ton, which was 1.23% lower than the average market price of 20,866.67 yuan/ton on October 26.

The current aluminum price has fallen below the previous high and fluctuating operating range. Taking the average price of aluminum ingots at the beginning of the year (January 1, 2021) at 15,726.67 yuan/ton as the benchmark price, it has risen by 31.05%.

Aluminum price turning on the 19th, the coal factor should not be underestimated

The recent sharp drop in coal prices has strongly impacted the market sentiment in the non-ferrous sector, especially the market quotations of aluminum ingots and large electricity users. Speculative positions in the futures market are cleared, driving the linkage of spot prices, and aluminum prices have been declining recently.

According to the National Development and Reform Commission, major coal-producing regions such as Shanxi, Shaanxi, and Mongolia have recently gone all out to organize coal production, guiding coal companies to take the initiative to assume social responsibilities and stabilize market prices. According to market information, coal mines in Datong, Shuozhou, Mengdong, Ordos, Yulin, Tongchuan and other places have taken the initiative to lower coal pit sales prices recently. The price cuts are all over 100 yuan/ton, and the highest price cut reaches 360 yuan/ton.

The price of coal at pits in major coal production areas has dropped significantly, and the expected reduction in coal prices has intensified. The demand for downstream purchases of aluminum ingots has fallen sharply. The wait-and-see attitude is mainly due to the recent counter-cyclical rise in social inventories of aluminum ingots. Aluminum ingot prices have continued to fall. In the early stage, the price of aluminum was indeed high, and the downstream undertaking was weak, and the fear of high was strong. There was a certain momentum and room for aluminum prices to fall.

However, on the whole, the price of raw alumina is high, the cost of electricity is pushed up, the cost is rising, and the production ceiling is still expected to limit production and power restrictions. It is expected that the downward adjustment space will be narrowed in the near future.

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