This morning in metals news, August has been a record month for aluminum trading in China, Japanese steelmakers’ shares are down and Chinese steel showed signs of recovery Thursday.
Big Month for Aluminum Trading in China
According to Bloomberg, even with time to spare August has already been the heaviest month of aluminum trading ever in China.
China has undergone a series of supply-side reforms aimed at reducing oversupply, reducing pollution and alleviating pressure from abroad (particularly the U.S., which has pending Section 232 steel and aluminum investigations).
The Bloomberg report notes China is “shutting down unlicensed aluminum production capacity estimated by Citigroup Inc. to be about 4 million metric tons a year.”
Japan Steel Shares Down
Meanwhile, shares for Japanese steelmakers are down, according to a Reuters report.
The shares backtracked because the country’s biggest producer of steel, Nippon Steel, agreed on price cuts for the six months through September with Toyota Motor.
Chinese Steel Futures Looking Bright
According to a Reuters report, Chinese steel futures bounced back Thursday based on domestic demand spurring positive investor sentiment.
A dip in the temperature is expected to yield more construction and, thus, greater steel demand, the report says.
Rebar futures have surged this year by 50%, according to Reuters.