As of 19:30 on February 9, the main London aluminium futures contract offer hovered at US$3205.8 per tonne, having hit its highest value since 2008 at US$3236 per tonne overnight.
This means that London aluminium futures have continued to rise by more than 14% this year following a 42% rise last year, making it one of the best performing metals on the London Metal Exchange so far this year.
"At the moment, the London aluminium futures rally is looking unstoppable." A Wall Street commodity investment type hedge fund manager to reporters straight. since February, many hedge funds scrambled into the period aluminum market to buy up arbitrage, to beat the drum type aggressive position building way to push the London period aluminum in breakthrough 3000 U.S. dollars / ton integer mark, quickly to 3250 U.S. dollars / ton approaching.
"Tightening supply and demand is indeed one of the fundamental reasons driving London aluminium futures prices higher by the day." The above-mentioned Wall Street commodity-investing hedge fund manager pointed out.
Aluminum ingot accumulation during the Spring Festival was lower than the average of previous years. According to SMM data, as of February 7, 2022, the Spring Festival period domestic aluminum ingot inventory increased by 140,000 tons to 866,000 tons, from the law of previous years, before the holiday downstream factory holiday, aluminum ingot inventory often began to increase, according to the average value of the past five years, the Spring Festival accumulation of about 180,000 tons, and this year, the accumulation of significantly lower than in previous years.
Behind the soaring aluminum prices, on the one hand, is to Europe mainly in the region of high energy prices, resulting in smelters cost pressure. On the other hand, as the world's major aluminum exporters, Russia and Ukraine's dispute once again to the global aluminum supply overshadowed a layer of worrying.
In addition to Baise due to the impact of the epidemic electrolytic aluminum enterprises have planned to reduce production, after the Spring Festival, Jin Lu Yu area due to environmental protection policy led to alumina reduction production, superimposed on some of the overseas production reduction news are pushing up aluminum prices. Industry general analysis that, in accordance with the situation of the epidemic clearing in various regions, it is difficult to recover within a short period of time in the region.
