In the global economic recovery, increased demand, and supply chain disruption under the double stimulation, "fairy aluminum" never stopped climbing, just want to god, after some efforts, international aluminum prices from time to time and double innovation high. Lme aluminium prices hit an intraday high of $3,229 a tonne on October 14, nearing a record high set in 2008.
In the international commodity bull market, "fairy aluminum" but take the lead, the rally does not lose the "coal crazy", "Dr. Copper" and other heroes. Against this backdrop, the world's largest supplier of aluminium delivered a disappointing financial report.
A few days ago, the UnitedCompanyRUSALPlc announced 2021 Q3 business data, according to its statistics, this quarter, the average market aluminum price of $2,729 per ton (about 17,420 yuan), a sequential growth of 11.6%, a year-on-year increase of 40%.
Rusal said the price rise in the third quarter was mainly due to power rationing and decarbonization targets in Asia's largest economy, which disrupted the balance between supply and demand in the global market in the first half of the year. Data show that from January to September 2021, global primary aluminum production capacity increased by 5.4 percent year-on-year to 50.8 million tons, of which China produced 29.4 million tons of primary aluminum, accounting for 58 percent.
On top of that, soaring natural gas and coal prices have put pressure on aluminium's production costs. These factors have left the world aluminium market short of 1.1m tonnes in the first nine months of the year, compared with a surplus of 2.2m tonnes in the same period last year. When demand exceeds supply, aluminum prices rise naturally.
Rusal's third-quarter sales, however, fell 11.8 per cent to 915,000 tonnes. Sales in Europe fell 39% and in Asia 22%. The reason for this strange phenomenon is that rusal's cargo cannot be shipped, or is still in transit, only to be counted as inventory.
So just how clogged is global freight traffic? The world's biggest supplier of aluminum can't even ship it out. As of October 19, a total of 334 container ships were berthed at major ports, waiting to be unloaded. The PORTS of Long Beach and Los Angeles are among the worst congested, with 80 container ships waiting to berth.
Starting on November 1st, Mr Biden will fine shipping companies that stay too long at ports, saying they will have to pay $100 a day in detention fees for each container they do not ship out on time. Even so, the global shipping supply chain will remain tight until 2022, experts said.
Rail freight from Russia to Europe is now 350 per cent cheaper than expensive sea freight. In the first nine months of this year, Russian railways transported 782,000 teU and are on track to cross the million mark for the year, but the country's railways are so hot they are starting to get clogged.
And The Russian railway and port transport has been overloaded operation, Russian enterprises can not transport goods out, is not the way. As a result, The Russian Railway, which has seen the coming of age, is planning to invest 200 billion rubles to promote the "seven-day arrival" plan between 2019 and 2024, that is, the time it takes for railway goods to cross Russia will be reduced from the current two weeks to one week.
