News

NEWS CENTER

27

2018

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05

Aluminum market overcapacity China's import to output


China's expanding aluminum production capacity is being exported to the world. A few days ago, at the 30th Global Aluminum Conference held in Vancouver, companies expressed their concerns about the future global market-under the background of domestic overcapacity, Chinese demand will change to Chinese supply. This role change from a cake to a market competitor may change the competitive landscape of the global aluminum market. Export statistics released by China Customs on the 21st showed that aluminum exports totaled 2.84 million tons from January to August this year, a year-on-year increase of 30.1 percent. Behind the surge in exports is a serious excess of domestic aluminum production capacity and sluggish consumer demand, starting in 2011, domestic aluminum

 

China's expanding aluminum production capacity is being exported to the world. A few days ago, at the 30th Global Aluminum Conference held in Vancouver, companies expressed their concerns about the future global market-under the background of domestic overcapacity, Chinese demand will change to Chinese supply. This role change from a cake to a market competitor may change the competitive landscape of the global aluminum market. Export statistics released by China Customs on the 21st showed that aluminum exports totaled 2.84 million tons from January to August this year, a year-on-year increase of 30.1 percent. Behind the sharp increase in exports is the serious excess of domestic aluminum production capacity and sluggish consumer demand. Since 2011, the growth rate of domestic aluminum apparent consumption has slowed down year by year, while capacity expansion has taken a step. According to statistics from the Business Agency, as of the end of 2014, the domestic production capacity has reached 44 million tons, while the output is only 23.684 million tons. The capacity utilization rate is just over half. In contrast, the international capacity utilization rate is about 90%. Although about 500000 tons/year of electrolytic aluminum production capacity was shut down in the first half of this year, more than 100 million tons/year of new production capacity was still put into operation, and the scale of production capacity in regions with energy and resource advantages is still expanding. Domestic electrolytic aluminum production is increasing at a rate of 35000 tons per year. Want to digest capacity to improve utilization, the domestic aluminum industry began to seek export opportunities. Compared with the global capacity utilization rate, China, which accounts for 80% of the world's production capacity, will gradually become the main exporter of aluminum, which is expected to provoke the backbone of aluminum consumption in the international market. There is also a certain demand space in the international market. According to Dow Jones news on the 23rd, the data released by the World Bureau of Metal Statistics (WBMS) on Wednesday showed that the global aluminum supply was short of 487000 tons from January to July 2015 and 754000 tons in 2014. The global aluminum market has felt the pressure of competition from China. Citigroup analyst DavidWilson said during the International Aluminum Conference on the 23rd that China's aluminum supply "flood" will not stop. At the same time, due to the increase in China's supply, the market needs more production cuts.

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