Aluminum prices strengthen in January

Aluminum prices strengthen in January

 

Gamma-PGA (gamma polyglutamic acid)

Aluminum prices strengthened in January. According to the Commodity Market Analysis System of Shengyi Society, as of January 23, 2025, the average price of aluminum ingots in the East China market in China was 20213.33 yuan/ton, an increase of 2.17% from the market average price of 19783.33 yuan/ton on January 1, and a decrease of 0.62% from yesterday.

 

Reasons for the increase in aluminum prices in January:

 

Lun Aluminum Drive:

 

1. The EU may implement a ban on Russian aluminum, and the news that Russian aluminum will once again face Western sanctions has raised expectations of increased demand for LME spot goods.

 

2. The Russia-Ukraine conflict, the information that may affect the natural gas facilities, together with the decline of natural gas inventory in Europe in the severe winter, has significantly promoted the rise of natural gas prices in Europe. The rise in energy prices has pushed up the cost of aluminum ingots in Europe. Supporting the price of London aluminum

 

The Trump Effect:

 

On a macro level, Trump’s inauguration within this month has intensified uncertainty in policy interpretation. The domestic tax cuts and external tax increases advocated by Trump have pushed up the prices of imported goods and increased market concerns about re inflation.

 

In the trend of domestic aluminum ingot destocking:

 

Aluminum ingot inventory maintains a trend of depletion, and the rate of depletion far exceeds expectations. According to data, as of January 23, the social inventory of aluminum ingots in mainstream areas of China was 459000 tons, an increase of 10000 tons from 469000 tons on January 2.

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