This Morning in Metals: Canadian P1020 aluminum exports to U.S. fall in July
This morning in metals news: the Aluminum Association of Canada reported the country’s aluminum exports to the U.S. have declined; Great Lakes region steel production is down this year; and the International Tin Association commented on Yunnan province’s tin stockpiling initiative.
Canadian aluminum exports to the U.S. decline
Canada’s aluminum exports to the U.S. are down, the Aluminum Association of Canada reported.
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“The Aluminium Association of Canada is reporting an expected approximate 30 percent drop in the month of July in the industry’s exports to the U.S. of standard commodity ingot or “P1020” (112 kt), over June numbers (155 kt),” the association said in a release. “These numbers confirm a downward trend beginning with an initial reduction of 16% in June numbers over May (184,789). This nearly 40% downward trend for the last two months indicates improving recovery in demand for Value Added Products (VAP).
“Production at smelters in North America shifted towards P1020 during first half 2020 in place of Value Added Products (VAP), as demand from the auto sector for these products dropped due to COVID-19.”
Great Lakes steel production down 20%
While capacity utilization levels have started to recover in recent weeks, U.S. steel production in the year to date compared to the same period last year remains down.
Production in the Great Lakes region is down 20% year over year, the Times of Northwest Indiana reported.
ITA: Yunnan tin stockpiling ‘unlikely’ to affect market
The International Tin Association, commenting on the Chinese province of Yunnan’s offering of incentives to producers to stockpile up to 40,000 tonnes of tin, said the move is not likely to significantly impact the tin market.
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“The issue with stockpiling efforts is that participating companies can lose money if the tin price increases,” the ITA opined. “With the stockpile lasting for a year, and tin currently testing its year-to-date high, producers are unlikely to be willing to participate in the scheme.
“Currently, only one tin producing company is currently considering using the Yunnan government’s scheme.”
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