What do record steel and aluminum imports have in common? China, Korea, India and other countries’ governments essentially shun economics and unfairly subsidize these industries in myriad ways, creating a huge oversupply bubble. Taras Berezowsky explains how imports are affecting the US aluminum price as well as pushing down London Metal Exchange prices for it across the board.
The Indian aluminum cash price saw a 2.0 percent drop on Friday, May 16, landing at INR 105.75 ($1.78) per kilogram and making it the biggest mover of the day. The 3-month price of aluminum weakened by 0.4 percent on the LME, settling at $1,796 per metric ton. On the LME, the primary aluminum cash price fell 0.3 percent to $1,753 per metric ton.
Chinese aluminum prices were mixed for the day. The cash price of Chinese aluminum saw a 0.7 percent decline to CNY 12,950 ($2,079) per metric ton. For the fifth consecutive day, the price of Chinese aluminum scrap held flat at CNY 12,250 ($1,966) per metric ton. The price of Chinese aluminum billet saw little movement at CNY 13,590 ($2,181) per metric ton. The price of Chinese aluminum bar continues hovering around CNY 14,200 ($2,279) per metric ton for the fifth day in a row.