Chinalco News According to Dow Jones News on November 11th, the surge in China's aluminum exports is becoming as controversial as the rapid increase in steel shipments; now, the price of such metals for cars and beverage cans Continue to linger at a level slightly above the six-year low.
Official data show that although the volume of exports has declined last month, China’s aluminum exports have increased by 14.4% so far this year, as companies in the industry use production compared to international competitors. The advantage of lower cost to seize market share.
The International Aluminum Institute's data shows that aluminum production in China has grown year-to-date as major aluminum companies such as Aocoa Inc. (AA) cut production this year. 18%. A large supply has caused prices to remain under pressure.
There is almost no indication that China will cut production soon, which means that almost no one expects aluminum prices to pick up quickly. Ivan Szpakowski, an analyst at Citibank in Hong Kong, said that Chinese producers have added about 3 million tons of annual aluminum smelting capacity this year and may increase by another 1 million tons by the end of the year.
Szpakowski said that the increase in production capacity is very unfavorable for the price. China's aluminum market is facing increasing supply oversupply due to increased production capacity, so it is forced to increase its export volume. Szpakowski expects aluminum prices to rebound only slightly next year.