MIAMI Overproduction in
the global aluminum market that has led to low prices is mostly
concentrated in China, according to United Co. Rusals
director of supplies and logistics, Yakov Itskov.
China accounts for about 44
percent of the worlds rapidly growing aluminum
consumption, but prices remain low due to overproduction and
overcapacity in the country, Itskov said at AMM sister
publication Metal Bulletins 19th Bauxite and
Alumina Conference in Miami.
"(Global) aluminum consumption
has reached 47.4 million tonnes per year, but the market is
still under pressure of low prices due to overproduction, and
the overproduction is concentrated in China," Itskov told
Itskov pointed to government
intervention as the reason for overproduction in China, as well
as to the countrys lack of exports. "China doesnt
export aluminum because there is no VAT (value-added tax)
reimbursement. Chinese policy also supports high domestic
prices," he said.
Rusal said in August that it
would cut 275,000 tonnes of annual production by 2018 (
amm.com, Aug. 27), but in announcing a 2012 loss
last month it said it would cut 300,000 tonnes this year alone
amm.com, March 4).
A version of this article was first published by AMM sister
publication Metal Bulletin.