According to the futures through network “report, by the unexpected yuan depreciation, China the original expansion of exports of aluminum material will receive a further boost. China is the world’s largest producer of aluminum plate.
Goldman said that despite the decline in aluminum prices, many manufacturers have not cut out, partly because of the government’s subsidy policy. At the same time, China’s domestic demand is weak, has stimulated a large number of aluminum exports to the global market. 1-7 this year, China’s aluminum exports rose 28% year on year to record high. And this week the people’s money devaluation, aluminum market will face more supply, because people Za weakness will reduce domestic production costs.
Briggs BNP, an analyst at Paribas Stephen in Paris, said: “it is very clear that bad, which reduces the cost of domestic dollar denominated production.” LME this year three months aluminum fell 14% to $1589 per ton. According to the harbor intelligence data, in the Chinese devaluation people Za 1.9%, the average cost of production per ton of raw 2024 aluminum plate reduction of $12 to $1728. The company expects 10% against the dollar, people’s money, will further reduce the cost of $50 to $1678 per ton.
According to customs data, as of July this year, China exported 2870000 tons of aluminum and aluminum products this year, a record high. Harbor general manager Vazquez Jorge said in a report Tuesday: “the devaluation of the renminbi has restored the competitiveness of China’s exports.” “China’s structural economic growth slowdown, production capacity and production will be the main driving force for the decline in commodity prices.”