As Beijing is about to tell the Chinese aluminum industry to take its operations overseas to ease the supply glut, Alcoa and Rusal may have reason to worry.
According to Reuters, “Market participants said the government was clutching at straws and that few firms in the world’s largest aluminium consumer and producer would move capacity overseas in the short-term as oversupply is an international problem.
“But the possibility of a longer term shift could spook international smelters such as Alcoa and Rusal , who would fret that Chinese players could undercut their businesses – especially if they receive subsidies as some currently do domestically.”
Following a two-day flat streak, the price of Chinese aluminum scrap climbed by 8.6 percent on Thursday, September 5.
The Chinese aluminum cash price saw little change in its price yesterday. For the fifth day in a row, the price of Chinese aluminum bar remained essentially flat. The price of Chinese aluminum billet remained essentially flat.
The primary aluminum cash price saw a 1.6 percent decline on the LME to $1,744 per metric ton. The 3-month price of aluminum weakened by 1.3 percent on the LME, settling at $1,796 per metric ton. The cash price of primary Indian aluminum fell 0.9 percent to INR 115.85 ($1.74) per kilogram.