Aluminium Alloy Ingot Prices Fall in China, Opposes the Trend Observed in Germany
Aluminium Alloy Ingot Prices Fall in China, Opposes the Trend Observed in Germany

Aluminium Alloy Ingot Prices Fall in China, Opposes the Trend Observed in Germany

  • 26-Jun-2024 4:39 PM
  • Journalist: Kim Chul Son

With the week ending on June 14th, in Germany, the Aluminium Alloy Ingot market remains robust despite significant production declines in the first quarter of 2024. High energy costs and a tense economic situation burden manufacturer. However, strong demand from key sectors like construction has supported the market, contributing to a recent price uptick. In the USA, Aluminium Alloy Ingot prices have remained stable, following trends from the previous week. Meanwhile, the Chinese Aluminium Alloy Ingot market has faced a decline.

With the week ending on June 14th, Germany's Aluminium Alloy Ingot market remains robust, with fluctuating prices indicating a 1.8% uptick compared to prior week. The German aluminium industry is currently grappling with significant production declines. According to Aluminium Deutschland, nearly all subsectors experienced downturns in the first quarter of 2024. The production of recycled aluminium, a critical component in Europe's decarbonisation efforts, has seen a notable decline. High energy costs continue to burden manufacturers, contributing to the overall tense economic situation in Germany. Despite these challenges, the supply side remains relatively robust, adjusting to the fluctuating market conditions and maintaining a dynamic balance between supply and demand. Additionally, the market shows resilience, particularly from important customer industries such as construction. Despite the economic challenges, demand from these sectors remains strong, providing a stabilizing factor for the Aluminium Alloy Ingot market.

In view of the current market dynamics and conditions, the prices of the Aluminium Alloy Ingot in USA have continued to follow the trend observed over the last week due to no significant changes in the demand and supply impacting the final prices.

The prices of the Chinese Aluminium Alloy Ingot market have seen decline of 0.5%. Arrivals of stocks in South China, particularly from Guangxi and Yunnan, have been significant. Recent supply disruptions in Guangxi have led to increased inventory pressure at some upstream aluminium plants. These supply dynamics have resulted in a build-up of inventory, which has put downward pressure on prices. The overall performance of domestic Aluminium Alloy Ingot inventory is no longer robust enough to support market fundamentals, further contributing to the price decline. Additionally, the Chinese aluminium market is facing challenges due to a slowing economy. Weaker-than-expected performance in the manufacturing and construction sectors has led to reduced demand for Aluminium Alloy Ingot. This reduced demand, combined with the increased supply and inventory pressures, has created a dynamic market environment. Consumers and market participants are cautious, reflecting the broader economic uncertainties and the fluctuations in demand and production costs.

According to ChemAnalyst, the US market may see a rise in Aluminium Alloy Ingot prices due to a expected increase in demand from the automotive sector. In Germany, fluctuations in raw material market prices, coupled with supply limitations, could potentially drive up the cost of Aluminium Alloy Ingot. Meanwhile, China is experiencing favourable purchasing trends and growing demand, which may lead to price increases for Aluminium Alloy Ingot. Additionally, the overall upward trend in raw material costs is likely to contribute to higher production expenses across these markets.

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