The year 2021 started very dynamically and dramatically from the point of view of aluminum semi-finished products market. 2020 was a relatively quiet year where most manufacturers, affected by lower demand caused mainly by the confusion around Covid-19, focused on optimizing capacity and costs. Prices were relatively stable and delivery times were only slightly above the technological ones, i.e. very short. The result of this situation was a partial reduction in production capacity, reduction in the number of employees, a reduction in warehouses and a focus on reducing imports from outside the EU. However, the concurrence of all these actions, supported on the other side with above expectations strong demand, literally caused panic in the market in January 2021. Some large distributors, under the guise of applying anti-dumping duties, redirected their orders previously applied in China, to “starving” European producers, who were more than happy to accept them. Demand from the United States increased significantly at the same, supported by even higher prices, to which some producers directed part of their production. However, this extended delivery times significantly and traditional customers of European mills, accustomed to fast delivery that was not forcing them to maintain high stock volumes, had to respond with their orders. The result is a rocket extension of delivery times from a few weeks to entire year-quarters and especially the unavailability of material. The reduced capacities of the mills are so busy with the current influx of orders that they are not able to accept additional volumes even in the long term. That is why today the smelters determine for customers how much material they can deliver and in what term, regardless of how much the customer would like to order. In practice, this mean that today it is almost impossible to order material for before July 2021. Of course, accompanying this situation is the constant rise in prices, which is already approaching 150% of December prices (excluding the price of metal – LME) and continues to grow rapidly. In the end, this will mean that some processors will not be able to secure the material in required volume, time or price.
The year 2021 started very dynamically and dramatically from the point of view of aluminum semi-finished products market. 2020 was a relatively quiet year where most manufacturers, affected by lower demand caused mainly by the confusion around Covid-19, focused on optimizing capacity and costs. Prices were relatively stable and delivery times were only slightly above the technological ones, i.e. very short. The result of this situation was a partial reduction in production capacity, reduction in the number of employees, a reduction in warehouses and a focus on reducing imports from outside the EU. However, the concurrence of all these actions, supported on the other side with above expectations strong demand, literally caused panic in the market in January 2021. Some large distributors, under the guise of applying anti-dumping duties, redirected their orders previously applied in China, to “starving” European producers, who were more than happy to accept them. Demand from the United States increased significantly at the same, supported by even higher prices, to which some producers directed part of their production. However, this extended delivery times significantly and traditional customers of European mills, accustomed to fast delivery that was not forcing them to maintain high stock volumes, had to respond with their orders. The result is a rocket extension of delivery times from a few weeks to entire year-quarters and especially the unavailability of material. The reduced capacities of the mills are so busy with the current influx of orders that they are not able to accept additional volumes even in the long term. That is why today the smelters determine for customers how much material they can deliver and in what term, regardless of how much the customer would like to order. In practice, this mean that today it is almost impossible to order material for before July 2021. Of course, accompanying this situation is the constant rise in prices, which is already approaching 150% of December prices (excluding the price of metal – LME) and continues to grow rapidly. In the end, this will mean that some processors will not be able to secure the material in required volume, time or price.
