Near the end of 2017, spot aluminum ingot prices did not usher in the expected rise, but ushered in a change in the issue of reduced production during the heating season. This has also brought a lot of impact to aluminum alloy ingot companies. On the one hand, the price of aluminum alloy ingots has dropped, and on the other hand, the price of scrap aluminum has fallen slowly. Near the end of the year, various regions have experienced "gas shortage" one after another, natural gas prices have risen, and aluminum alloy ingot production and supply have decreased. Faced with such a situation, can the consumption of aluminum alloy ingots usher in a breakthrough? Can the price of aluminum alloy ingots be supported by the end of the year?

 

At present, the supply of scrap aluminum, which is used as a raw material, has begun to appear in short supply. The scrap aluminum that can be used to produce aluminum alloy ingots includes profile aluminum, raw and cooked aluminum, etc. The prices of these materials did not experience a significant drop from the previous quarter. The price of aluminum dropped from a high of nearly 16,500 yuan/ton in September to the current position of 14,500. During this period, the price of scrap aluminum, including aluminum wire, aluminum grating, and clean raw and cooked aluminum, all fell by no more than 700 yuan/ton. According to my survey of the inventory of 100 recycled aluminum alloy ingot enterprises by my nonferrous network, the inventory of raw material scrap aluminum has an increasing trend in the fourth quarter. On the one hand, the continued decline in aluminum prices has also prompted downstream purchasing sentiment. On the other hand, as the end of the year approaches, the willingness to stock up has increased in response to the upcoming holiday. Overall, both the price and supply of scrap aluminum will show a steady upward trend.