The hidden crisis is to aggravate the global inflation level, bring a huge cost crisis to the downstream manufacturing industry, and further aggravate the inflation crisis.

Historically, industrial metal prices have a close relationship with inflation. Once the prices of important metals such as copper, zinc, and aluminum continue to rise, global inflation will further intensify, and inflation may continue into this year's northern hemisphere winter and early 2022. Behind the soaring aluminum prices, production continues to shrink due to the impact of the energy crisis. The smelting aluminum industry has always been a large consumer of electricity. It requires 14 megawatt hours to produce each ton of aluminum. The sharp rise in electricity and natural gas prices has caused the cost of the aluminum industry to rise sharply. Although aluminum prices have soared, the sharp rise in electricity prices has dampened the confidence of smelters in increasing production, preventing aluminum supply from being released quickly.

According to the logic of commodity trading, market funds are betting crazily on a surge in aluminum prices. In recent weeks, aluminum prices have risen to $4,000 per ton. This is actually a bet that aluminum prices may significantly exceed The current level has reached a record high. Although aluminum prices have soared, the sharp rise in electricity prices has dampened the confidence of smelters in increasing production, preventing aluminum supply from being released quickly. Based on the above logic, market funds are betting crazily on soaring aluminum prices. Bloomberg quoted options market traders as saying that in recent weeks, commodities copper, aluminum, and zinc have been quoted as high as $4,000 per ton for aluminum call options, which is actually a Bet that aluminum prices have the potential to significantly exceed current levels and even reach record highs.

Therefore, the prices of copper, aluminum and zinc, as the most important industrial metals, are soaring at a breakthrough speed, which is bringing survival pressure and challenges to downstream manufacturers. As the prices of daily necessities and consumer goods rise, global inflation still faces upward pressure, which also poses a severe test to the monetary policies of various countries. The surge in copper, aluminum, and zinc has issued a stern warning about the risk of inflation, and the global economy is entering an inflation risk stage.