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Inside and outside the aluminum will be synchronized

Inside and outside the aluminum will be synchronized with the current cost of imports , domestic aluminum prices and the LME aluminum price ( March period ) usually maintains a 10:1 relationship. But when the domestic spot supply is tight , this proportion will gradually increase ; contrast, when the domestic stock more fully , it will fall. In recent years, the domestic aluminum LME aluminum price ratio in most cases the premium status , recently remained proportional 14600:1390 , which is the result of strong domestic aluminum consumption in support of the formation . Because in recent years , the domestic aluminum consumption growth appeared nonlinear (when the size of the overall economy develops to a certain level , aluminum consumption growth will be higher than the average speed of economic development ) , which led to a rapid expansion of electrolytic aluminum industry, domestic production this year is expected to reach 5.3 million tons of aluminum ingots . The non-linear growth in aluminum consumption has become more gentle , domestic aluminum production this year is expected at about 400 million tons, that is to say only consume about 4 million tons of aluminum ingots . From the above data, the excess aluminum ingots is obvious . However, the production of alumina, primary aluminum raw materials needed is a long-term shortage in the country , is still the need to import large quantities in order to maintain production. Many companies are taking the processing methods, namely, imported alumina , aluminum ingot exports to balance this process. If the import and export is always in equilibrium , it should be said that the domestic aluminum ingot supply is still tight . However , the problem is that the current high price of imported alumina , while LME three-month aluminum futures price is still hovering around $ 1,400 , be difficult to profit from the business processing exports . Therefore, when the domestic aluminum price premium is still in the state , many manufacturers will naturally choose in domestic sales , so I believe that this premium status will soon be leveling off.
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