Aluminum prices keep rising
2020 is a dramatic year for most industrial products, and the economic impact of the epidemic at the beginning of the year lasts for the whole year. The first quarter was a precipitous decline. In the second and third quarters, there was a continuous rebound with smooth lines, and this kind of rise with macro policy stimulus was still going on at the end of the year.
Returning to the electrolytic aluminum itself, in the first quarter of 2020, the price fell across the cost line, resulting in the shutdown of some production capacity maintenance. When the price began to repair in the second quarter, the capacity began to release gradually. However, this process is far less rapid than the recovery of downstream demand side. Under the influence of this mismatch between supply and demand, aluminum prices continue to rise.
In the third quarter, the post digestion of demand had just come to an end, and the seasonal peak season and macro stimulus measures continued to add weight. After the high consolidation, Shanghai Aluminum Corporation was able to take action again. Combined with the weakening of the US dollar and the shift of foreign processing demand to domestic market, the price of Shanghai aluminum has also reached new highs.