Tag: aluminum prices

This Morning in Metals: Steel capacity utilization rises; Hydro inks energy deal; aluminum prices skyrocket

This morning in metals news: the U.S. steel capacity utilization rate rose to 85.3% for the week ending Sept. 11; Norsk Hydro signed an energy deal; and, lastly, aluminum prices […]

No Boring Markets Here: Aluminum On a Steady Upward Trend

No Boring Markets Here: Aluminum On a Steady Upward Trend

You can’t accuse the aluminum market of being boring, which is exactly what most consumers don’t want to hear.
As buyers, we like nothing better than a nice steady predictable market. A little bit of price inflation is good if you are a stockist or trader, as it keeps the market turning over and encourages forward buying. But as consumers, most buyers would rather the market be flat and boring, the same next month as this and predictable for six months out. “Can’t think when it was last like that,” you will say.
Benchmark Your Current Metal Price by Grade, Shape and Alloy: See How it Stacks Up
The problem is that the most highly traded metal on the LME and the second most highly produced metal after steel is still buffeted by squalls from every quarter. Recently, talk (and let’s remember that so far it is mostly talk) of capacity closures next winter in the greater Beijing hinterland to combat pollution has helped lift the price by encouraging talk of scarcity. Beijing has shown solid intent in this direction, already denying planning approval to 2 million tons of new capacity in China’s northwest province of Xinjiang and clamping down hard on plants elsewhere that it deems to be failing environmental standards.
The next target is said to be smelters in China’s heavily industrialized provinces of Shandong and Inner Mongolia. Of China’s total illegal aluminum capacity (which, according to some sources, is between 3.7 million metric tons and 6.6 million metric tons), the clear majority of it (up to 4.3 million metric tons) is situated in Shandong, Aluminium Insider reports.

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