It’s no secret that aluminum composite panel prices are raising higher and higher at the moment as demand recovers from the experiences of the past year.
Many customers are complaining to us:
- This price is too outrageous
- I cannot accept this price
- Can it be cheaper
- Can the shipping cost be included
- Why the price has increased again?
Unfortunately, we can only say no.
Why cause this situation? Let Alucoworld explain the reasons in detail. In addition to customers, helpless people also include manufacturers like us.
Aluminum Prices Hit Decade High
When the aluminum price exceeded RMB 20,000, we wrote an article specifically to inform this (Aluminum Price: Expectations vs. Reality). Unfortunately, we have recently received news from the government that the aluminum price will raise to RMB 25,000 per ton before the end of 2021.
Up to now, the aluminum price has reached the RMB 21,000, and there is no continuous sign of decline. We have done a calculation with aluminum composite panel. When the aluminum price rises to RMB25,000 per ton, the unit price of aluminum composite panels will be at least USD2.50 per square meter more expensive than it is now!
Supply Falls Short Of Demand
As the global economy recovers from Covid-19, the demand for aluminum has risen by at least 50% in the past year; at the same time, China, as the world’s largest aluminum producer, has reduced production out of environmental considerations. Many countries are still troubled by the epidemic, and its production capacity is only 50%-70% compared to before.
As one falls, another rises. Aluminum, an important raw material for many industries, is in a situation where supply exceeds supply.
Maybe in the near future, when you finally make up your mind to buy aluminum composite panels with us; even if we wave the money, we won’t be able to buy any raw material in the market.
Ocean Freight, Ocean Freight, Ocean Freight
Since 2020, the price of ocean freight is like riding on a rocket. Many customers tell us: wait until the ocean freight has dropped before shipping. In fact, some orders have been stored in our warehouse for nearly a year.
Excessive ocean freight has seriously affected import and export business. Every time when we inform customers of the corresponding shipping costs, someone is always daunted. Although we did not make a profit from it, the high ocean freight still became a serious burden.
Perhaps what is needed now is not fantasy but reality. The reality of ocean freight is that this cost is very high and irreplaceable.
However, some customers shared with us that because they had just purchased a large amount of aluminum composite panel from Alucoworld before the Covid-19; these stocks helped them regain control of the local market and made a lot of income this year.
Risks and opportunities coexist. At present, it is indeed full of various unfavorable factors. If you are still interested in the aluminum composite panel business, you may need to plan now to share the cost through large-scale purchases, and to cater to market demand with sufficient inventory without causing price imbalances.
Maybe this will help.
Everything will get better. If you have any needs, please don’t hesitate to contact us.