Fast-growing Chinese aluminium sector attracts increased govt scrutiny

July 21, 2017

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As the Chinese aluminium sector comes under greater pressure to moderate its capacity growth, the government is cracking down on so-called ‘illegal’ smelters, analysis by Wood Mackenzie global aluminium markets senior research analyst Ami Shivkar has found. Shivkar argues that unqualified smelters in Shandong province are likely to be targeted next. Such a move will have knock-on effects, she says, including a tighter market balance and a probable uptick in prices. Aluminium prices are now trading at $1 920/t, up 20% compared with the average price of $1604/t in 2016.

Category: General