Baku. 27 December. REPORT.AZ/ The world market sees a decline in aluminum price.
Report informs citing Bloomberg that aluminum sells at nearly $1,900 per ton at the London Metal Exchange, while it was $2,300 last year and more than $2,500 in April.
Report’s analytical group believes that the decline is temporary since the demand for aluminum is increasing and the aluminum price is expected to not fall below $2,000 per ton.
The exporters and importers are sometimes not very surprized at the decline in prices for a number of reasons.
While aluminum exports around the world amounted to $55.9 billion this January-October, going up by 22% from the indicator of five years ago, the growth over a year earlier has made up 26%. Such a sharp increase in supply causes decline in the aluminum price. In the ten months of 2018, US increased import of melted aluminum by 6.3%.
The drop in prices can also be caused by political factors. The US government did rule out that sanctions against Russia’s RusAl and its chairman Oleg Deripaski’s company can be lifted. Willing or not, this has prompted a belief among investors that the aluminum price will increase, which is why they started selling it, causing a decline in prices.
Moreover, innovative steps by aluminum producers and low based price of aluminum as a result of these innovations also contribute to a decline in price.