Russia tops as a net exporter of primary aluminium in 2016

2016 has turned out to be a buoyant year for primary aluminium after a long period of volatility. LME aluminium prices recovered 13.4% in 2016 ending the year with a rate of USD 1714 per ton. The market sentiment on aluminium has improved considerably since the beginning of 2016, when prices hovered at a range of USD 1466 to USD 1500 per ton. Falling supply in China with the closure of capacity and demand growth as the result of China’s infrastructure initiatives supported the price throughout the year. The production base for primary aluminium has visibly shifted to Asia while the market primarily remains in the east.

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Here we are trying to analyse the trading pattern for primary aluminium covering the major primary aluminium suppliers in Asia. We are considering four leading aluminium producing Asian countries that played a significant role as suppliers to the primary aluminium market in 2016:

1. China
2. Russia
3. UAE
4. Saudi Arabia

In 2016, China controlled its primary aluminium capacity as a way to support aluminium price and also due to rising raw material prices which made production unprofitable. Other than that there were allegations by Western producers about Chinese producers dumping primary aluminium as fake semis in Europe and USA which made China squeeze their aluminium export.

China exported about 5, 87,548 tons of primary aluminium in 2016. Notably the largest part China’s primary aluminium export was headed to Japan. Japan imported about 3, 45,632 tons of primary aluminium from China in 2016.  Other major importers are Thailand, Vietnam, Malaysia and South Korea.

Russia houses Rusal, one of the top primary aluminium manufacturers in the world. Rusal has a production capacity of 4.7 million tons or 9% of global production. The country exported 3,670,532 tons of primary aluminium in 2016 securing the place for the top primary aluminium exporter in the world. The total value of aluminium export was US$ 7 billion. The top importers of aluminium from Russia are Japan, France and USA.

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UAE, top primary aluminium producer in the GCC region exported 2,098,531 tons of primary aluminium in 2016 leading the way as a net exporter of aluminium.

Saudi Arabia, another growing primary aluminium hub in Asia exported 7, 16,891 tons of primary aluminium in 2016.

Though China is the top producer of primary aluminium in the world, it is evident that the country is not the net exporter of primary aluminium. China is a net exporter of aluminium semis and mill products. Russia tops as an exporter of primary aluminium in the world and will be playing a significant role as an aluminium supplier globally.

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