06 JANUARY 2016AlCircle.com
Chinese auto market buoyancy fails to keep domestic aluminium demand afloat
Edited by : AL CIRCLE
1 min read
Primary aluminium production curtailments plus rumours of imminent stockpiling of aluminium helped lift prices in December 2015. From an all-time time low of RMB9870/t hit in late November, the SHFE cash price has since rallied, and reached RMB11,200/t by the end of the year. At the start of 2016, prices again dipped as concerns developed over the financing of any stockpiling program.
However, despite the pick-up in SHFE prices, the Chinese market remains soft. Demand is still struggling in key sectors such as construction and consumer durables although the automotive market has picked up in the last two months, thanks partly to cuts in auto sales taxes.
The CNIA in China has called for semis VAT export rebates to be increased further. As of yet the Chinese government has not heeded this call, although CRU believes that this is a possibility.
However, despite the pick-up in SHFE prices, the Chinese market remains soft. Demand is still struggling in key sectors such as construction and consumer durables although the automotive market has picked up in the last two months, thanks partly to cuts in auto sales taxes.
The CNIA in China has called for semis VAT export rebates to be increased further. As of yet the Chinese government has not heeded this call, although CRU believes that this is a possibility.
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