
According to an SMM report, China saw steep growth in exports of unwrought aluminium and aluminium semis in August.
After the recently concluded bilateral dialogue between the U.S. and China during the G-20 Summit in September, both U.S. and China decided to work collectively to address the aluminium excess capacity issue. While Chinese leaders promised to check aluminium export that is flooding global markets and compelling smelters in U.S. and Europe closing capacity, aluminium producers in China seem to have another plan. The capacity started falling in the month of July and August but it has started rising again after Chinese smelters restarted close capacities.
According to China customs data, China exported 410,000 tonnes of aluminium in August, up 20,000 tonnes from July 2016 and up 20.59% YOY. The SHFE/LME aluminium price ratio fell from July’s 7.6 to 7.5 in August, encouraging more exports, SMM said.
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Exports of unwrought aluminium and aluminium semis dropped to the lowest in August 2015, as the SHFE/LME aluminium price ratio rose from 7.38 to 7.63 in August 2015. According to SMM this is the reason behind the YOY increase in exports in August 2016.
However, exports of unwrought aluminium and aluminium semis recorded a drop of 3.75% to 3.08 million tonnes in the first eight months of 2016, compared to the same period of 2015.
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