The hottest aluminum has become a new focus of cou

2022-07-23
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Aluminum has become a new focus for countries to "pressure" China to reduce production capacity.

after steel, aluminum, an important non-ferrous metal, has become a new focus for countries to "pressure" China to reduce production capacity. According to the financial times 19, aluminum associations in several regions have formed an international alliance, calling for the creation of a global forum before the group of 20 (G20) meeting in Hamburg this summer to deal with the soaring aluminum production in China. Wangrui, an analyst of Shanghai Nonferrous aluminum industry, said in an interview with the global times on the 20th that the main reason why foreign countries believe that China should further reduce production capacity is that China's export volume of aluminum processing products has increased significantly in recent years, threatening the interests and living space of local enterprises in export destination countries

open letter submitted by the three groups

the Financial Times said that the three industry groups in the United States, Europe and Canada, composed of aluminum giants such as Rio Tinto and Alcoa, had submitted an open letter to the G20 leaders, accusing China of "distorting international trade flows and undermining global stability" in large-scale aluminum production. Therefore, the use of stepper motors was still less, and proposed to create a global forum during the G20 summit in Hamburg this summer, "To cope with the rising aluminum production in China"

it is reported that "Russian enterprises hit hard by China's large-scale production" also support this initiative. Together, they accused the Chinese government of "not fully fulfilling its commitment to reduce production capacity"

China is the largest aluminum producer in the world. According to Reuters, China's share in the number of top 10 high-level scientific and technological talent teams shortlisted by Wang Haowei, a global aluminum producer, has increased from 25% 10 years ago to more than 50% today. According to the data released by the Ministry of Commerce in January, China's annual aluminum output in 2016 was 31.87 million tons, an increase of about 1.3%, significantly lower than the annual growth rate during the year

according to the data provided by Shanghai Nonferrous Metals Co., Ltd., China's annual export of aluminum foil increased from 350000 tons in 2009 to 1.08 million tons in 2016. During the same period, the export of aluminum strip increased from 845000 tons to 1.65 million tons, and the export of aluminum profiles increased from 570000 tons to 1.2 million tons

The wall street said that aluminum is becoming a new focus of Sino US trade frictions. On the 10th of this month, the U.S. International Trade Commission (USITC) made the final decision of "double anti" and supported the continued imposition of high anti-dumping and countervailing duties on Chinese aluminum profiles. On the previous day (9th), Alcoa also submitted an application for filing a "double anti" case against aluminum foil in China to USITC and the US Department of Commerce. According to Chinese customs data, in 2016, China exported 169000 tons of aluminum foil products to the United States, accounting for 15.6% of the total export volume

Reuters said that at the beginning of this year, the contradiction between the United States and China over aluminum exports escalated. The United States formally complained to the World Trade Organization (WTO) in January, saying that China provided subsidies to some primary aluminum producers. The US side said that these subsidies "artificially" increased China's aluminum production capacity, output and market share, caused a downturn in aluminum prices and "seriously damaged" US interests. Wang Rui told the global times that China's primary aluminum exports have been low because China's primary aluminum exports need to pay an export tariff of 15%. According to China's customs data, the total export volume of China's primary aluminum in 2016 was 16800 tons, which accounted for a very small share in the global aluminum market

in recent years, the international market has gradually increased trade barriers to China's aluminum industry. At the beginning of this month, the Indian Ministry of commerce also made a positive and final anti-dumping determination on Chinese aluminum foil. Last October, the Australian anti dumping Commission announced a "double anti" investigation into certain aluminum wheels imported from China

"dumping" is not reasonable

Wang Rui told the global times, "for the purpose of protecting their own interests, relevant countries have repeatedly launched 'double anti' investigations on China's aluminum products. However, they have ignored the continuous improvement of labor productivity in China's aluminum industry, and still use the third country price substitution method in anti-dumping investigations, which is unreasonable." "We always believe that in the context of global economic integration, the increase of China's aluminum exports is the result of the improvement of the comprehensive competitiveness of domestic aluminum processing enterprises, and cannot be simply labeled as' dumping '."

Wang Rui believes that only in the face of foreign trade pressure can China ensure the normal operation of machinery. Chinese enterprises should actively respond to the lawsuit and take necessary measures to safeguard the interests of the whole industry

in fact, in consideration of transformation, China has begun to reduce production capacity in the aluminum industry, and China's aluminum output only increased by about 1.3% in 2016. China's Ministry of environmental protection issued a document with local governments last month, requiring 28 northern cities to reduce the aluminum production capacity of the calibration step of metallographic microscope by 30%. Goldman Sachs estimates that these regions account for 20 per cent of global aluminum production capacity

according to the financial times, in fact, the current aluminum output and market price have become stable, and China is playing an active role in this process through capacity structure adjustment

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