Wednesday, August 3, 2016
Competition moves downstream and into the arena of trade laws.
Aluminium is an industrial metal in wide use from cans to aeroplanes and electronics. As with most commodities, demand for the metal has been driven by China's growth and by its increased overall usage. China's aluminium production has grown rapidly since 1990, and competition with rival producers is now intensifying downstream in semi-finished products.
- Closures of bauxite mines and aluminium smelting capacity will occur mostly outside of China.
- Aluminium companies will shift business models to compete on downstream products.
- Chinese aluminium manufacturers will be scrutinised for potential 'dumping' practices.