US Steel is not only threatened by the Chinese dumping, Alcoa is also at stake, foreign media will spearhead China. The world’s third largest aluminum producer Alcoa Inc. (Alcoa, Alcoa), operating at a loss due to a large number of cuts announced smelting capacity of 503,000 tons of 2024 aluminum pipe and alumina refining capacity of 1.2 million tons, accounting for 3 percent of the nation’s output.
Alcoa’s announcement that the company will temporarily shut down Washington and New York, smelter, and reduced refining capacity in Texas plant, the time period of 1 year.
Global aluminum Harbor Intelligence analysts estimate that Alcoa will cut the nation’s aluminum production capacity will be reduced by about 3 percent, but less than 1% of the global total, in addition to more estimates, if aluminum prices fail to rebound next year the United States All smelter closures will occur.
Bank of America believes that last year China aluminum production surged global oversupply, the current international price of aluminum fell more so close to 6-year low, leading to more than 50 percent of the world’s aluminum producers are operating at a loss, only China’s aluminum smelting providers also surplus. Harbor Intelligence estimates that this year China’s aluminum production may account for 55% of the world.
Wall Street knowledge had earlier reported that Chinese domestic aluminum suppliers exploit tax loopholes, the re-export of finished aluminum dress contractors, so not only do not need to pay a 15 percent export tax, but also get a 13% value-added tax refund from semi-finished products, so China’s export of aluminum in the world is quite competitive.
However, the international aluminum prices continued to decline also hurt the Chinese aluminum companies, in order to reduce losses, last month, China’s largest Chinese aluminum, 3rd quarter total revenue decline 9.08%, while after-tax loss of 930 million yuan yuan, becoming a listed company last year, “the king a loss,” Although the first half of this year operating improvement, but the second half of the reproduction losses.
As soon as possible to stop bleeding, China Fushun Aluminum electrolytic aluminum Chalco announced that its entire production line shut down, China Liancheng Aluminum subsidiary branches all electrolyzer ceased operation, the two companies together to close nearly one million tons of production capacity, if aluminum prices continued to decline, there will be more of aluminum companies cut off.
Imports from China to the United States of semi-finished aluminum continues to increase, this year in the Middle East aluminum exports have also increased significantly. US government data showed that in the first eight months, Saudi-Arabia to the United States a total of 66,000 tons of aluminum, much higher than the 2,700 tonnes last year.