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The fall in aluminum on the world metal market prices

8 April 2014

Despite the significant expansion of the scope of application of aluminum in recent years, a significant increase in its production and the permanent excess of supply over the purchasing activity does not stabilize pricing in this market segment. Thus, only in the last month the cost of lightweight and durable materials decreased by almost seven per cent, and the first of this year, a drop of monetary expression of aluminum, based on one ton of material amounted to twenty per cent. The main reason for such decrease in the raw material consists of quotes its constant excess metal which is present on the market. Despite the considerable efforts of all actors in this process, to change this trend is that you can not. As the metal stock exchange workers, and major industry giants involved in aluminum production, can not in any way affect the situation. And even permanent reduction of production capacity of some companies of the sector does not reduce the passions. The reason for that is the presence of industrial warehouses a large amount of aluminum stocks that will not soon run out. Even the active expansion of the scope of important structural materials are not too saves manufacturers of silver light material.

According to the London Metal Exchange aluminum stocks today took a truly frightening amount and surpassed the barrier of five and a half million tonnes. Special surprise industrialists did not cause this message, because the product offer in this area, significantly exceeds buyer demand in the row for 8 years. Some recovery in the aluminum sector may come at a stabilization of the economic situation in Europe and the expansion of production in Japan. According to the forecasts of independent analytical agencies in the near future the demand for such material will begin to grow, but not as quickly as we would like, about six percent annually. Aluminium projected purchase volumes about ten years may be about seventy-five million tons. In the meantime, in the realities of the present day, a further fall in the value of such semi-finished products further disrupt economic stability of those companies for which the production of aluminum is the main source of income.

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