What is the rise and fall of aluminum prices today? What impact does it have on our aluminum-plastic laminating film industry?

 

According to the news released by Hexun.com on December 25, 2024, the main contract for Shanghai Aluminum opened at 19945 yuan/ton on December 24 and closed at 19880 yuan/ton, a decrease of 85 yuan/ton or 0.43% from the previous closing price. Meanwhile, SMM data shows that the A00 aluminum price on December 24th was 19790 yuan/ton, a decrease of 80 yuan/ton from the previous trading day. The impact of changes in aluminum prices on the aluminum-plastic laminated film industry is as follows:

 

In terms of cost

Raw material cost: Aluminum is one of the important raw materials for aluminum-plastic laminated films. With the decline in aluminum prices, the cost of purchasing aluminum raw materials for enterprises decreases. Under other unchanged conditions, production costs decrease and profit margins may increase; The rise in aluminum prices will directly lead to an increase in raw material procurement costs, bringing cost pressure to enterprises. If enterprises cannot pass on costs to downstream customers in a timely manner, profits may be squeezed.

Inventory cost: If the price of aluminum falls, the inventory value of aluminum raw materials purchased at high prices by the enterprise in the early stage may decrease, and it may face inventory impairment risk; When aluminum prices rise, the inventory value of companies holding aluminum raw material inventory increases, which to some extent increases the asset value of the company, but at the same time may also increase the cost of capital occupation.

 

In terms of market demand

Downstream industry demand: Downstream industries of aluminum-plastic laminated film, such as food, medicine, electronics, etc., may see a decrease in aluminum prices, which may lead to a decrease in the price of aluminum-plastic laminated film. The cost of using aluminum-plastic laminated film for downstream enterprises may also decrease, which may stimulate them to increase their procurement of aluminum-plastic laminated film, thereby promoting the growth of demand in the aluminum-plastic laminated film industry; When aluminum prices rise, downstream companies may seek alternative products or reduce packaging expenses, which may reduce the demand for aluminum-plastic laminated films.

Industry competition pattern: When aluminum prices fall, some smaller enterprises with weaker cost control capabilities may face greater competitive pressure and even be eliminated, leading to an increase in industry concentration; When aluminum prices rise, companies with cost and scale advantages can better cope with the pressure of rising costs and occupy a more advantageous position in market competition, while some small businesses may reduce their market share due to the inability to bear the cost increase.

 

In terms of product price

Pricing strategy adjustment: With the decline in aluminum prices, in order to maintain market competitiveness, aluminum-plastic laminated film manufacturers may appropriately lower product prices, which may lead to a decrease in the overall price level of the industry; As aluminum prices rise, companies often have the intention to increase product prices in order to maintain profit levels, but the magnitude of price increases also needs to consider market competition and downstream customer acceptance.

Price fluctuation risk: Frequent fluctuations in aluminum prices can pose difficulties for aluminum-plastic laminated film companies in pricing, making it difficult for them to accurately grasp product prices, which may lead to unreasonable pricing and affect the company's economic benefits.