CKDAs Proactive Response to The Global Aluminum Price Surge

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. Dong Anh Licogi Mechanical Joint Stock Company (CKDA) understands that while we cannot control the global market, we can control our mindset and actions. We are therefore always proactive in our preparation for any circumstance.

According to analyses, several factors have driven aluminum prices up in the first half of 2025:

• 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.

  

   

The surge in aluminum prices has significantly affected Vietnam mechanical companies, including CKDA.

• 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

  

   

Anticipating market uncertainties, CKDA proactively implemented early response measures by:

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 Dong Anh Mechanical across revenue streams.

Guided by our core values of “Discipline – Action”, CKDA remains committed to delivering consistent quality, on-time production, and stable pricing for all our customers and partners— even in turbulent times.