BEIJING, Aug. 25 /PRNewswire-Asia/ -- Himfr.com, one of China's leading B2B search platforms with more than 30 B2B industry websites to its name, analyzes China's aluminium section market situation.
This year, China's domestic electrolytic aluminum production is operating at a blistering pace. The whole first year's accumulated output has reached 819 million tons -- a year on year increase of 45.6%. Upcoming rises in energy prices should affect the production of aluminum in the near future. So far, the actual reduction in production will not exceed 0.3 million tons. But with the recent domestic aluminum price rebound and adjusted alumina price, electrolytic aluminum enterprises have reduced production even more, with some shutting down production. If aluminum prices do not fall far below the market cost line, the market will be unlikely to cut down production.
From the aspect of downstream consumption, real estate investment spending is still seeing growth in China. As real estate investment increases, aluminum demand will be increased.
In the future, the supply increase and potential decrease of demand will intensify aluminum market pressures, thereby limiting a steep rise in price. In the near future, policy, funds and technology have the greatest impact on the market.
In the second half of the year, policy will remain in a stable stage. Further tightening of state policy is unlikely -- a favorable trend for the aluminum market.
Policy and capital still support the aluminum market. Subject to the supply pressures, rises in aftermarket aluminum prices are hard to sustain. For the windows and doors industry, aluminum price movements will directly affect the aluminum alloy windows and doors and other related products.
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