Consumers, Producers, traders, and industry experts worldwide get together to discuss the dynamics impacting demand and supply. They have negotiations as consumers are always concerned about the supply of aluminum, producers to secure long-term agreements, and traders for arbitrary windows. Aluminum Conference will be on 13th to 15th September 2022. But now it does not look as smooth & fruitful due to three challenges are:
Supply Problem in Europe:
The supply problem in Europe is due to logistics & capacity cuts. The labor supply shortage is a problem to unload the ship at the port of Rotterdam quickly, the lack of trucks and increasing strikes are all creating uncertainty. Few consumers are looking some other sources of replacement for Russian-origin aluminum. Aluminum units are available in Asia (Port Klang), but logistics problems are making it inconvenient. If logistics issues are solved, suppliers can quickly supply material to Europe and China’s markets.
Rising Cost of Aluminum Production:
The rising cost of aluminum, i.e., prices of raw material, energy, and logistics makes aluminum production non-profitable. Production has declined by Romanian Aluminum Producer Alro & Hydro’s Slovalco Plant.
Productivity declined also observed outside Europe when Century Aluminum announced to halt output at Hawesville Smelter.
Focus on Green Aluminum:
All over the world, consumers, including in Asia and the US, have focused on purchasing green aluminum. Rising demand for green aluminum has increased the offer prices to US $40/MT for 2023.
If aluminum experts can give better solutions, the aluminum market will have better results, but it doesn’t look easy in the present situation.
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