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Many Factors To Promote Alumina Prices Reproduce Big
Aug 28, 2017

Many factors to promote alumina prices reproduce big

This week the market once again showed a small amount of alumina turnover state rebound trend, this trend has appeared in the end of May, a gradual reduction in the stock trading volume of the environment, change radically alumina's own and external market conditions are basically similar.

Once in the market atmosphere is determined, the Seller due to spot sales of basic deficiencies, in the short term there may be price rose, but does not need to be very obvious. The turnover of alumina enterprise price to 2550 yuan basic point, and North and south basically unified, even if the market is not fully sample significance significant turnover, the seller has to offer the call to 2600-2650 yuan.

A strong rebound that is not expected

Because of the lack of sufficient cash supply and spot trading, the current alumina spot market, more easily lead to each other "stampede" part of the buyer in buying enough after the emergence of a speculative trade actively involved in the stock market, on the one hand, just to be part of aluminum under supply is relatively unstable, begin to give up to the inventory to gradually establish the concept inventory. In conditions of limited stock, alumina enterprises more easily in real time according to the movement and to find the goods ready to transfer high intention to offer, you can see is real, just three days time, price adjustment of alumina at least 120 yuan, the next few days is still full of stamina.

Internal conditions are basically available

From the characteristics of alumina market prices rebounded sharply, basically have the following conditions: a large stock of pre contract signing, alumina enterprise inventory decline, some just need to plant inventory is relatively low. Learn from the LD summit in Kunming information, the summit period, ALD can determine the basic part of the large aluminum plant signed incremental spot contract. The basic price in 2480 yuan, although the market perception is not obvious, but since the signing of the object for many major alumina enterprises and major aluminum plant, once the main alumina enterprise in the long single basic conditions of adequate adjustment plan still export spot, the spot market liquidity shortage of supply remains tight, once the news release ignited the overall procurement the situation, prices may show a low frequency turnover jumped. In addition most of alumina enterprise inventory fell to a very low position, this manifest The change of data and phenomena, are also more likely to stimulate the seller and the buyer are expected to be adjusted, on the one hand the market stability when preparing just need stocking aluminum smelters and traders fear the lower amount of library, on the other hand, the Seller due to low inventory and long-term cash supply itself is limited, more optimistic about a rebound in prices.

Although the long long single sign can be the basic guarantee overall safety just need to plant, but always have some asymmetry of the spot purchase aluminium smelter and have a small spot exposure to aluminum, these factories and traders worried that once the market supply and the market, exacerbated by the price rebound. This is the total amount of single enterprise procurement in a single long spot and the proportion of contradictions, defects in the overall market in the main spot is too little, a word, or using a long single mode, or to the vast majority of enterprises have a collective participation in the spot market spot price discovery.

Peripheral support factors gradually increased

Alumina prices rebound in the external conditions of diverse and sustained, more explicit representation. Mainly for the sharp rebound, aluminum prices rising costs is expected to increase, people rally ignited. Aluminum prices rebounded since Needless to say, for aluminum, because the profit environment is excellent, the rebound in alumina prices is a positive attitude, but do not want to see is once a rebound period is up, change radically situation both buyers and sellers are difficult to accept the reality. The cost rises at the summit in Kunming, ALD has to predict in advance -- at least monthly costs 100 yuan, both shortage problem caused by strict environmental protection policies also have monthly ore price of caustic soda rose more than 200 yuan, in short, to continue to promote the supply side effects of environmental supervision reform, unprecedented pressure and the future of the heating season and production factors, raw material price gepp rose, Transfer to the alumina production cost control level will not be good to go. The optimistic expectations of the seller, the buyer's demand, cost rising, little spot market transactions sent sparks of fire and ignited fire, there could be a "fire".

The seller is happy to see the price rise

For alumina enterprises, certainly hope prices. The market Pu Wei bridge has enough short-term spot market supply, may form a pressure on the market, but the market did not expect enough cash supply and trend reversal of Wei bridge connected, as Wei bridge, but hope to spot sales down in the seller's market characteristics. Not only alleviate the financial pressure, but also realize the good price. For other major alumina enterprises, a greater proportion of long single, but also hope that someone will take the lead in the spot market clearing prices rose, that is light, not to offend customers, and achieve a high profit. The price is "flower briefly as the broad-leaved epiphyllum, malpractice although the market can realize the trading mechanism, but none of my business, you can hang up.

Market outlook

The establishment of the market in the atmosphere, extremely optimistic about the background; a limited supply of spot spot, with stage rose; aluminum prices, the cost of the move, the basis of alumina prices have been a solid foundation. From the view of aluminum price, demand, control and limiting the impact of the heating season, the oxygen aluminum market has the overall medium-term upward trend to keep rising, nature is a good thing, the only resistance is the price rise rate more than usual.

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