Welcome to our websites!

Environmental restrictions on electricity silicon and magnesium rose, downstream aluminum plant where to go

Environmental restrictions on electricity silicon and magnesium rose, downstream aluminum plant where to go

Just at the time of September, the market has been around the environmental protection, electricity restrictions “bad news”, even some manufacturers are hit by a double blow. In response to the above situation, my steel scrap aluminum team to different areas of the manufacturers to conduct research.


According to the research situation, we know that the current aluminum alloy ingot factory is basically in the loss-making stage because the price of silicon has soared 40,000 yuan/ton in just February time, making the production cost of manufacturers rise at least 2,000 yuan/ton. Some manufacturers even laughingly said that they do not produce alloy ingots this month and only sell silicon stock to meet the company’s expenses for the month. Some small factories do exactly that, stop production and sell silicon stock. Today ADC12 price is higher than the price of A00 ingot nearly 1000 yuan / ton, downstream die-casting small and medium-sized plants basically stop production, so that the orders of alloy ingot factory gradually reduced, alloy ingot many companies have the idea of shutting down production, while understanding that alloy ingot factory scrap aluminum inventory is basically more adequate. Short-term in the scrap aluminum demand weakened, the supply of the same situation, after the market scrap aluminum raw aluminum prices will fall, but if aluminum prices and silicon prices continue to go up, raw aluminum prices should have room to rise.


Another research learned that the aluminum bar factory orders this week than last week has been reduced, mainly because the A00 aluminum prices rose again, the price difference between the remelt bar and aluminum water bar is smaller, resulting in more downstream profile manufacturers use aluminum water bar. At the same time, the start-up rate of aluminum profiles has been reduced, and the small and medium-sized factories of aluminum profile plants have been shut down due to the continuous high operation of aluminum prices and weak profits in the plants, even to the extent of producing at a loss; large factories basically reduce production and mainly purchase on demand, which leads to a reduction in orders from aluminum bar plants. Aluminum bar factory scrap aluminum inventory is more general, now most of the scrap aluminum for on-demand procurement, no replenishment will, some manufacturers want to consume inventory first. Scrap aluminum market new material prices are mainly related to the spot aluminum prices, aluminum prices continue to be high, many manufacturers by lowering the rate of folding down the receipt price, the

late scrap aluminum new material prices or may be a small increase.

1 23

Post time: Sep-25-2021