China's primary aluminum market is facing pressure from oversupply
Release Date : 2021/2/5 2:23:57  Click volume : 3436
The global aluminum market is currently in a state of severe oversupply, and China is still in the stage of increasing production capacity, and there is no sign of any decline in output. Whether domestic or foreign, weak market demand will still drag down and pull down aluminum. price.

In my country, the expansion of production capacity is mainly concentrated in the western region. The low electricity prices and abundant coal resources in the western region have made the expansion of primary aluminum production capacity in the region obvious. While the western electrolytic aluminum project is expanding, the eastern electrolytic aluminum production capacity has not decreased, resulting in overall overcapacity. Getting worse. Statistics show that my country's electrolytic aluminum production capacity will reach 28 million tons in 2012, and it is expected to exceed 30 million tons in 2013.

Under the impact of low energy costs in the central and western regions, China’s primary aluminum market will face greater pressure from oversupply next year. Aluminum companies in the central and southwestern regions will face severe challenges again. In the medium term, domestic aluminum prices will continue to maintain Weak finishing. In the context of sluggish downstream demand and high aluminum inventories, the increase in aluminum production has undoubtedly increased the imbalance of supply and demand in the domestic aluminum market, resulting in a downturn in aluminum prices in the futures and spot markets. Since the second half of 2011, domestic aluminum prices have been declining. , The downstream domestic electrolytic aluminum enterprises suffer serious losses, and most enterprises are difficult to achieve profitability.
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