Alcoa Closed Warrick Aluminium Factory
Aluminum prices in recent days decline started lead to industry “jittery” atmosphere, and many analysts say Chinese aluminum overcapacity situation will continue for several months, but also to suppress the domestic aluminum prices continued to. Because of this, China aluminum industry or will begin to consider the strategy of product “out”, will further increase the export of products.
Chinese aluminum product export increase, can ease the Western supply shortages and also to be studied, but can be compounded with western manufacturers competition, change new aluminum market pattern.
Chinese December unwrought aluminum and aluminum exports in November from 390000 tons up to 540000 tons, an increase of 38%. This can start as stepping up exports of aluminum products.
Analysts said: “drive China aluminum industrial strength is not a market economy, but debt. Because of the need to pay the debt, the factory will have to continue to run.” And this “vicious spiral” of the industry to maintain is led to the current aluminum smelting business “difficult” the biggest obstacle. In the weak demand and the smelting business also have to keep the production conditions, the oversupply situation more serious is not difficult to understand.
The market needs to strengthen the “self-discipline”, only “self awakening” to digest more capacity. At present, when the aluminum price to a certain extent may lead to China off some production capacity. However, Chinese Research Institute Anteko (Antaike) estimation, aluminum production capacity since the end of last year has about 400000 tons of exit.
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