Due to macro-control and a series of policies restricting the excessive development of electrolytic aluminum, the domestic aluminum price was suppressed last year and was hovering near the production cost for a long time. After the policy of canceling export tax rebates and levying 5% of export tariffs was clear, Shanghai The performance of aluminum prices is far inferior to that of Shanghai Copper and London Aluminum. When the Shanghai Copper and Aluminum Aluminum Companies hit new highs, Shanghai Aluminum's price has been tepid. What are the reasons for Shanghai Aluminum to be so rampant? The author believes that the main reason for suppressing copper prices is that domestic aluminum production capacity is too large. The electrolytic aluminum investment boom that began in the late 1990s has drastically expanded domestic production capacity. In 2001, China’s net exporters changed from aluminum net exporters to net importers. Live in the front of the world. As a result of macro-control, the construction of 1.47 million tons of capacity was suspended and the backward production capacity of 720,000 tons of self-baked tanks was eliminated last year. However, the domestic production capacity is still as high as 9.5 million tons, and the operating capacity is also about 8 million tons. Since the electrolytic aluminum plant has a large fixed asset investment and a long construction period, the fixed cost accounts for a large proportion of the total cost, so even if the aluminum price is lower than its production cost, as long as the price of aluminum is higher than This, the aluminum plant to maintain production can still make up part of the fixed expenses, unless the aluminum price fell to its closing point (price = variable cost). Although the spot price of 16,500 yuan/ton has caused many companies to face losses, in order to make up for the fixed expenses, they will still try their best to support them. Therefore, it is unlikely that production capacity that has been put into operation will be cut in production and production this year. Once the price of aluminum has risen slightly, these companies that have been struggling for a long time are like grabbing a life-saving straw and will naturally increase their sales efforts, thus suppressing the aluminum price upward. If aluminum prices continue to rise, when the production of electrolytic aluminum can reach the expected rate of return on investment, a large number of idle production capacity will also be put into operation. Therefore, the possibility of Shanghai Aluminum's recent continuous rise in prices without a substantial increase in demand is very high. less. While operating capacity remains high, export costs of aluminum have increased due to the elimination of export tax rebates on aluminum exports and the 5% increase in export tariffs, and a new policy promulgated last year banned annual production capacity below 100,000 tons. Aluminum smelters directly import alumina. According to statistics, of the 140 domestic aluminum smelting companies, only about 20 are allowed to directly import alumina for processing trade. This will promote smelters that cannot directly import alumina from other large aluminum. A factory purchasing import rights will also indirectly increase export costs. According to customs statistics, in January this year, the net aluminum output was only 91,000 tons, which was far lower than the 169,000 tons in December 2004. In February, net exports continued to drop sharply to about 41,000 tons, and this year is also possible. It will further introduce some measures to restrict aluminum exports, and domestic stocks are more difficult to release through exports. Looking back at the price trend of Shanghai Aluminum last year, three upswings occurred in March, August and December last year, but the market ended in a long and fiasco, which greatly dampened the long-term enthusiasm of the market and the lack of market enthusiasm for recovery. Investors' participation is not high, resulting in insufficient liquidity. At present, Shanghai Aluminum's trading volume and open interest are very small, which is not conducive to large capital inflows and outflows, and the market activity will take some time. In summary, although production costs support aluminum prices, if aluminum demand remains stable at the current level, Shanghai Aluminum will not have the momentum and foundation to continue rising. Source: China International Futures Brokerage Co., Ltd.
Sink Accessories
Gusjnk kitchen accessories provide everyday efficiency with style. Designed to keep your drainpipe clear, and the color kitchen sink strainer is a perfect finishing touch for your sink. Made of SU304 steel and durable ABS plastic, the strainer is removable for easy cleaning, and allows water to flow freely while trapping food particles and debris. Available in multiple colors to match your kitchen sink and complement your decor.
Sink Accessories,Kitchen Sink Accessories,Farmhouse Sink Accessories,Farm Sink Accessories
Guangdong Huayou Hardware Products Co.,Ltd , https://www.gudsink.com