SHANGHAI, Mar 29 (SMM) - Due to the low inventory in domestic and overseas markets and the recovery of downstream demand, the profits of aluminium smelters are currently at a historically high level of 5,000 yuan/mt, or even close to 7,000 yuan/mt at some smelters in Xinjiang. At the beginning of March, the profits of Chinese aluminium smelters exceeded 5,000 yuan/mt, approaching the peak level in 2021.
Analysts pointed out that on the international front, the sharp rise in energy costs in Europe has caused market concerns about the reduction of non-ferrous metal production in Europe, and the supply chain disruption has temporarily offset the adverse impact of the hawkish speech of Fed officials.
Recently, there have been outbreaks of COVID in many parts of China. Aluminum processing enterprises in Shandong’s Binzhou, Fujian’s Quanzhou, Tianjin and other regions were forced to reduce their production due to the pandemic. Transportation in many regions has been disrupted by the pandemic.
On March 25, LME aluminium inventory stood at 678,100 mt, a decrease of about 5.19% from the previous week, and LME aluminium inventory has been in a downward trend this year; SHFE aluminium inventory stood at 308,900 mt, a decrease of 7.45% from a week ago.
