June 22, 2021
The price of aluminium has rocketed since last year, the current level is at 2319.39 up from 2190.48 last month and a year ago was 1459.93. This is a change of 5.89% from last month and 58.87% from one year ago. Showing one of the biggest increases since 2013. To find out what has made this change happen, looking at activity is crucial.
The primary reason why the increase in importing has happened is that China is making a large number of purchases.
This then in turn pushes the market price higher. However, it is not just aluminium that is being pushed higher all metals are going up in price.
China has all of a sudden been buying more aluminium because of the aggressive policies their government has put in place to kickstart the economy following lockdown restrictions earlier this year. The imports have affected the shipping industry, leading to rising costs on falling container space availability. Therefore making prices of things like aluminium rise.
Chinese stimulus spending will wane at some point, and when it does China will likely resume its role as a net exporter of aluminium.