SunSirs: Aluminum Prices Was Operating Weakly in December

Aluminum prices was operating weakly in December

Aluminum prices remained weak in December. According to the Commodity Market Analysis System of SunSirs, as of December 30, 2024, the average price of aluminum ingots in the East China market in China was 19,713.33 RMB/ton, a decrease of 3.24% compared to the market average price of 20,373.33 RMB/ton on December 1.

Three factors contributing to the weak downward trend of aluminum prices in December:

The weak downward trend in aluminum prices in December was mainly caused by three factors. Firstly, aluminum prices rose in early November, reaching a new high for the year. However, the actual demand from downstream terminals was lower than expected, which led to resistance to high priced raw materials and intensified competition in the upstream and downstream of the industrial chain; Secondly, due to the cancellation of export tax rebates for downstream aluminum products, there was an expectation of weakened export demand in the short term. At the same time, there was a strong expectation of tax increases in the United States, which suppressed prices; The third was the main driving force behind the upward trend of aluminum ingots, and the expectation of sustained cost increases was weakening.

List of Domestic Inventory Data for Aluminum Ingots

In December, the total inventory of domestic aluminum ingots decreased slightly. As of December 30th, the social inventory of electrolytic aluminum in the mainstream domestic market was 473,000 tons, compared to 553,000 tons on November 31st, and 80,000 tons were sold out.

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