GLOBAL ALUMINUM PRICE SURGE: IMPACT & RESPONSE

In the first half of 2025, global aluminum prices surged, peaking at USD 2,600/ton in April before slightly easing in May — but still hovering significantly higher than the same period last year. This price spike reflects not just a temporary market wave, but a structural shift in the global supply chain.

📌 Key Drivers Behind the Price Hike

• Rising energy costs: Aluminum smelting is highly energy-intensive, and elevated electricity prices have sharply increased the cost of raw aluminum.

• China’s output cuts: Due to strict CO₂ reduction mandates, smelters in provinces like Yunnan and Guangxi reduced production significantly.

• Geopolitical tensions in resource-rich nations: Instability in Guinea, Russia, and export tariffs in Australia disrupted the bauxite and alumina supply.

⚠️ What It Means for Domestic Manufacturers

For companies like CKDA, the price volatility poses multifaceted challenges:

• Rising input costs compress profit margins

• Long-term contract pricing becomes difficult to fix due to market uncertainty

• Maintaining product quality and delivery timelines becomes more complex when input costs shift weekly

💡 CKDA’s Proactive Response

1. Securing Stable Supply & Strategic Negotiations

CKDA maintains long-term partnerships with trusted ingot suppliers, securing quarterly pricing agreements instead of spot purchases to hedge against volatility.

2. Smart Operations and Tech-Driven Management

• ERP systems and real-time analytics help CKDA forecast market trends and update pricing models dynamically

• Operational efficiency improvements reduce energy use and increase material yield

3. Product & Market Diversification

CKDA expands into both industrial and high-end consumer aluminum segments — reducing dependency on a single customer or product line, and spreading cost risks across revenue streams.

✅ CKDA’s Commitment

We may not control global markets, but we fully control our mindset and operations.
Guided by our core values of “Discipline – Action”, CKDA remains committed to delivering consistent quality, on-time production, and stable pricing — even in turbulent times.