According to the Chinese Non-Ferrous Metallurgy Association (CNIA), tensions between China and the United States have reduced the consumer confidence index and knocked down the demand for aluminum products. “Even if China helped its producers to completely abolish import duties on a number of types of aluminum products, the decline in smelting capacity and rising production costs mean that metal exports are unlikely to grow significantly,” said a statement to CNIA. The Association added that, for the most part, the growth in demand for Chinese aluminum should provide the domestic market.
A number of industry segments, in particular the auto construction sector, have shown extremely weak results in the last 18 months. For the first time since the beginning of the 90s of the last century, the production and sales of cars decreased, according to government statistics.
Despite this, the State Council of China intends to promote the growth of aluminum production in the coming years to ensure technological development in the automotive and aerospace industries.
CNIA noted that the supply of aluminum scrap in China could not meet domestic demand due to the tightening of Chinese scrap import policy.