China’s exports of unwrought aluminum stood at 4.86mn mt in 2020, falling steadily since 2018. Antidumping rulings in most major countries will see these exports fall further, industry analysts say.
The Asian nation is the largest producer of aluminum its demand for exports is low. With a shortage in both primary metal and scrap, the country is now reconsidering its exports and now plans to ship exclusively value-added products, per media reports. In fact, it is one of the largest suppliers of secondary alloys such as ADC12 and A7 to Japan, the auto hub of the subcontinent.
China’s aluminum exports peaked in 2018 when the country was shipping at least 500,000mt of aluminum every month.
The country is now planning to liquidate its State Reserves to mitigate the shortage of P1020 and the consequent inflated prices. Similar reports are being heard about copper and zinc as well. As per estimates, the State Reserve currently holds 800,000mt of aluminum. The government plans to sell the metals directly to manufacturers and producers of value-added products in a phased manner, based on prior purchase history and sales volumes.