14 JUNE 2016AlCircle.com
China's aluminium output soars despite trade barriers
Edited by : AL CIRCLE
1 min read
China’s aluminium production rose to 2.68 million tonnes last month from 2.57 million tonnes in April, and 2.67 million tonnes a year ago, according to the data. Output declined 1.7 per cent in the first five months to 12.62 million tonnes.
Chinese smelters, which had pledged to slash production to bolster prices, are bringing back idled capacity after prices rebounded this year. With most producers in the world’s largest supplier enjoying solid margins, output growth will accelerate to 4 per cent year-on-year in the second half, Goldman Sachs Group Inc said in a report earlier this month.
China’s fading infrastructure boom has left it saddled with too much capacity after decades of rapid growth. The nation is exporting its surplus at record rates, drawing the ire of international rivals.
Competitors from India to the European Union have raised trade barriers and in recent weeks China’s industrial overcapacity has been singled out as a global problem and provoked criticism from industry bodies across the world.
For its part, China has pledged to reduce, rather cap its capacity, which is yet to see fruition. However, exports will likely stay high for years as local demand shows clear signs of decline.
Chinese smelters, which had pledged to slash production to bolster prices, are bringing back idled capacity after prices rebounded this year. With most producers in the world’s largest supplier enjoying solid margins, output growth will accelerate to 4 per cent year-on-year in the second half, Goldman Sachs Group Inc said in a report earlier this month.
China’s fading infrastructure boom has left it saddled with too much capacity after decades of rapid growth. The nation is exporting its surplus at record rates, drawing the ire of international rivals.
Competitors from India to the European Union have raised trade barriers and in recent weeks China’s industrial overcapacity has been singled out as a global problem and provoked criticism from industry bodies across the world.
For its part, China has pledged to reduce, rather cap its capacity, which is yet to see fruition. However, exports will likely stay high for years as local demand shows clear signs of decline.
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