China continues to frustrate metal producers globally with its excessive production and mass dumping.
While steelmakers globally have been protesting against China’s cheap exports, aluminium producers too are facing a tough time, as the world’s largest producer continues to churn out aluminium at low prices.
Fluctuating energy prices and volatile economic climate coupled with low priced Chinese imports are harming GCC’s aluminium producers, forcing them to export a majority of its produce.
This was revealed at the Arab International Aluminium Conference (Arabal) 2016 press conference held at Madinat Jumeirah on 23 October, 2016.
Speaking to members of the media, Abdullah J. M. Kalban, managing director and CEO of Emirates Global Aluminium (EGA) revealed that there are many concerns among local consumers with regards to Chinese imports.
“There is severe competition coming in from Chinese imports into the local [UAE] markets with low prices and very good quality. This is forcing local producers to export most of their produce to Africa and Europe,” he said.
“They are trying to mitigate their market share, Chinese [imports] are everywhere. Last year, China exported more than three million tonnes of aluminium, which put many producers out of business and led to closure of some aluminium manufactures,” he added.
Kalban also said that China will continue its mass production and exports with more than 2.5-2.8 million tonnes to be exported in 2016.
“Due to China’s oversupply, prices of aluminium dropped to $1,400 per tonne a while ago, and is hovering at $1,600 per tonne at the moment. We will not see ‘fair prices’ for the next couple of years,” added the chief of EGA.
Mohammed Al Naki, secretariat chairman of Arabal also shared the same sentiment. “Prices at which China is selling aluminium is lower than the cost of raw materials.”
While the Middle East primary aluminium industry’s combined production was 5.59 million tonnes in 2015, most of it was exported.
Arabal is scheduled to take place at Madinat Jumeirah in Dubai, from 22-24 November, 2016.
