Shandong Aluminum And Aluminum Profiles Exports Increased

- Oct 30, 2018-

(1) the shortage of global aluminum market and the increase of domestic output jointly promote exports. In April, the U.S. announced sanctions against Russian aluminum, which led to soaring aluminum prices, and the disruption of Alunorte, a Brazilian aluminium producer, and the strike at Alcoa's Western Australian plant, exacerbated the global alumina shortage. According to a report released by the World Bureau of Metal Statistics (WBMS), there was a shortage of 302,000 tons of raw aluminum in the global market from January to July 2018. According to the statistics of the State Statistical Bureau, the output of aluminium (electrolytic aluminium) in August was 2.84 million tons, up 7.8% compared with the same period of last year; the output of aluminium in January and August was 22.21 million tons, an increase of 3.5% compared with the same period of last year. The supply gap in the international market has widened, and domestic aluminum production has increased, jointly promoting the export of aluminum and aluminum materials at Shandong Port to increase substantially.

(2) the depreciation of the RMB will, to a certain extent, increase exports. From the beginning of April this year to June 14th, the depreciation rate of RMB against the US dollar was 1.8%. The rate of depreciation accelerated from June 15, with the exchange rate falling from 6.4168 to below 6.80 at the end of August. The cumulative depreciation of the RMB in the two phases was nearly 8%. The RMB is still above 6.8 against the dollar, closing at 6.8770 onshore on September 25, the biggest decline in two months. With the positive effects of the depreciation of RMB, the export profit margin of enterprises has expanded and export enthusiasm has been raised.