China's aluminum producers may become Trump's aluminum tariff winners
The Trump administration’s tariff measures, sanctions against Rusal (0486.HK), and Alcoa’s (AA.N) strikes in the alumina and bauxite industries in Western Australia have caused the aluminum market to be plagued by multiple factors.
RUSAL produced 1.87 million tons of aluminum in the first half of this year and is a major supplier in the US and many other countries around the world. According to reports, if the agreement is not reached to allow the United States to lift the sanctions against RUSAL, then RUSAL will have to suspend production or store the output.
According to data released by the International Aluminum Association (IAI) on July 20, global aluminum production in June was 5.321 million tons, down 2.2% from the previous month. However, official Chinese data show that China's aluminum output in June increased to 2.83 million tons, an increase of 1.6% over the previous month. China's aluminum production accounts for more than half of the world's total production. According to Reuters' calculations based on data released by the National Bureau of Statistics of China, aluminum production in June was about 94,000 tons per day, the second highest in history. The United States imposed tariffs on aluminum imports from the beginning of June, and it seems that it has not yet had an impact on China's aluminum exports.
News Date: August 14, 2018. Reported by Doreen.