05 DECEMBER 2014AlCircle.com
Alumina term imports could make it tough to secure bank loans
Edited by : AL CIRCLE
1 min read
Traders and smelter executives say that the 2015 term imports of alumina by Chinese smelters, is likely to be limited due to tight credits and expectations of weak local metal prices.
Even though China produces enough alumina to sustain the smelters in China, some additional term imports are always carried out by the smelters to maintain the existing capacity or to increase it. These term shipments made up two-thirds of the 4.2 million tonnes of the total alumina imports seen in the first 10 months of 2014.
Banks however have become very strict about reducing over-capacity that has been going on for the past decade and have cut back on loans for the steel and aluminium industries this year.
Smelters fear that booking term shipments might exclude the smelter from getting letters of credit form the banks.
Even though China produces enough alumina to sustain the smelters in China, some additional term imports are always carried out by the smelters to maintain the existing capacity or to increase it. These term shipments made up two-thirds of the 4.2 million tonnes of the total alumina imports seen in the first 10 months of 2014.
Banks however have become very strict about reducing over-capacity that has been going on for the past decade and have cut back on loans for the steel and aluminium industries this year.
Smelters fear that booking term shipments might exclude the smelter from getting letters of credit form the banks.
Unlock full access – sign up for FREE.
Key benefits
Find exclusive data-driven insights and in-depth analysis
Get our daily newsletter delivered straight to your inbox
Access real-time and historical price trends from global indices
Post and respond to latest business leads
Stay ahead with alerts on learning tools
...and so much more!SIGN UP / LOGIN
Previous article
Breakaway Research publishes report on Altech Chemicals’s HPA project
Next articleOrbite selects refractory materials
Grow with
AL Circle
