China's aluminum output growth puts pressure on international aluminum prices


  India's"Business Standard"reported on January 26 that Ansuman Das,chairman of India's National Aluminium Company(National Aluminium Company),said that the continuous growth of China's primary aluminum production is a major factor depressing international aluminum prices;Some Chinese aluminum companies have called on the government to abolish primary aluminum export tariffs.Once this proposal is adopted,it will greatly stimulate China's primary aluminum exports,which will put heavy pressure on international aluminum prices.
  According to the report,in 2014,the global primary aluminum output was 53.746 million tons,of which China’s output reached 27.98 million tons,accounting for 52%of the total.China's quarterly aluminum capacity utilization rate is about 82%-84%,which is several percentage points higher than the rest of the world.However,under the efforts of energy conservation and emission reduction,China is estimated to have permanently shut down 2.1 million tons of high-cost electrolytic aluminum production capacity(the entry"electrolytic aluminum"is provided by the industry encyclopedia),and it is expected that another 1.5 million tons will be eliminated in the future.production capacity.
  At the China International Aluminum Forum in November 2014,some electrolytic aluminum enterprises put forward the request that the government should cancel the export tax of primary aluminum.Due to the improvement of the international economic situation,the demand for primary aluminum has increased,and aluminum enterprises can export primary aluminum through the Improve the current loss situation.The proposal did not receive support from industry and key relevant government departments and was ultimately not passed.China encourages the aluminum industry to develop into deep processing with high technology content and high added value.Currently,the export of primary aluminum is subject to a 15%export tax,while aluminum processed products are not only exempted from export tax,but also given a certain degree of export tax rebate.
  The State Information Center(SIC)of China reported that China's aluminum oversupply situation is expected to gradually ease as demand recovers from the transportation,machinery,construction,power and electronics industries.Compared with the"absolute surplus"of other commodities,demand for aluminium is stronger due to more growth potential in the transport,machinery,construction,power and electronics industries,the report said.In addition,the current per capita aluminum consumption in China is only 15 kilograms,far lower than the 25 kilograms in developed countries,which also shows that there is huge room for consumption growth.
  The report pointed out that although China's aluminum industry is going through an unprecedented difficult period,the overcapacity of aluminum smelting is only a transition period,because the growth rate of China's aluminum production has been higher than that of production capacity in recent years.China's aluminium smelter capacity has increased at an average annual rate of 9.5%over the past five years,while aluminium production has grown at an average annual rate of 13.7%,SIC said.