China’s steel futures fell to a record low in Shanghai recently and a major aluminum association has asked the US trade representative to step in to stop imports of Chinese semi-finished aluminum.
Aluminum Association Asks For Semi Intervention
The Aluminum Association, a US industry body, has called on federal authorities to investigate allegations that Chinese producers of the metal are improperly labeling their exports, flooding the market and driving down global prices.
US aluminum producers have alleged that the Chinese have mislabeled exports as semi-fabricated aluminum products in order to evade an export tax on primary aluminum. These products, the US producers say, are often re-melted into primary aluminum further along in the supply chain.
The complaint by the Aluminum Association was sent in a letter dated September 4 to a unit of the US Trade Representative.
Chinese Steel Futures Fall to Record Low
Chinese steel futures fell to a record low on Monday amid tepid demand from the world’s top consumer of the steelmaking ingredient.
The most-traded January rebar futures on the Shanghai Futures Exchange fell to 1,839 CNY ($288.94) a metric ton, the lowest since the contract began in early 2009, before edging back above 1,900 CNY ($298.53). The contract closed 1.9% lower at 1,920 CNY ($301.67).
China’s steel consumption typically improves in September and October along with construction activity after the summer lull. But a slowing economy may mute the pickup and cap any gains in prices.