As electrolytic aluminum production in some provinces and regions is affected by double control of energy consumption and periodic power restriction, domestic aluminum prices have hit new highs all the way, among which Shanghai aluminum prices have risen by 21,220 yuan/ton on September 2, 2021, and many institutions and investors have raised the new target to the historical highs in 2006.

    There are four main factors driving up aluminum prices:

    The first factor is: the unprecedented monetary easing environment promoted this round of aluminum price rise;

    Factor two is: electrolytic aluminum capacity "ceiling" eliminates the concern of oversupply;

    The third factor is: the "dual carbon" target strengthens the expectation of favorable price, and the impact of dual control of energy consumption and regional power restriction on output in some regions greatly boosts the price rise;

     Fourth, the continued recovery of the economy after the epidemic was brought under control has strengthened market confidence. Especially in the process of rising nearly two months, the impact of the market on electrolytic aluminum production has become the biggest hype factor supporting aluminum prices.