Two Factors Affecting The Price Of Aluminum Alloy

Aluminum is the most abundant metal element in the earth's crust. China's electrolytic aluminum output ranks first in the world.

Aluminum alloy products are widely used in construction, automobile, motorcycle, aviation, communication, urban rail transit, household appliances, lamps and other industries. These key factors send a very important message: the price trend of aluminum ingots and aluminum alloys is greatly related to the trend of national economy.

Firstly, we divide the factors affecting the market price of aluminum alloy into two aspects:

(1) Market factors: raw materials are like industrial rice. They belong to the buyer's market, and their prices are often not determined by manufacturers or dealers.

(2) Cost factor: we separate the variable cost from the manufacturing cost and mainly discuss it. After decades of development, the process and equipment of the aluminum alloy industry have been formed, and the fixed cost is difficult to affect the aluminum alloy price in the short term. Therefore, we focus on the variable cost in the manufacturing cost and briefly discuss its impact on the market price.