At the end of December, aluminum prices stopped falling and stabilized

Weak aluminum prices in December

Aluminum prices remained weak in December. According to the Commodity Market Analysis System of Shengyi Society, as of December 31, 2024, the average price of aluminum ingots in the East China market in China was 19783.33 yuan/ton, a decrease of 2.90% compared to the market average price of 20373.33 yuan/ton on December 1.

Reasons for the stabilization of aluminum prices at the end of December:

At the end of December, aluminum prices stopped falling and stabilized, mainly due to the combined effects of the following factors:

Firstly, after mid to late November, aluminum prices experienced a phased decline. Due to the influence of high priced raw materials, manufacturers of outsourced alumina had high costs and incurred losses, leading to an increase in the industry’s willingness to reduce production and raise prices;

Secondly, the Guinea factor has once again been disturbed, and concerns about transportation channels have raised expectations for the price of alumina, leading to an impulse for aluminum ingots to rise;

Thirdly, as the end of the year approaches and long-term negotiations for the coming year begin, the competition in the aluminum price market intensifies;

Fourthly, in December, the social inventory of domestic aluminum ingots was depleted by 80000 tons, and the overall destocking was good.