South Korea's Aluminum Industry Is Worried About Their Aluminum Market

- Nov 23, 2018-

South Korea's aluminum industry is worried about the market being invaded and joined the anti-Gwangyang Bay Henan Mingtai Aluminum Project. In order to avoid the invasion of Chinese aluminum producers from the market, the aluminum industry in the Republic of Korea jointly tried to boycott a Chinese aluminum giant into the market. Representatives of the Korea Nonferrous Metals Association met with officials of the Gwangyang Bay Area Free Economic Zone Authority in Jeollanam-do on Friday, calling for a refusal to establish a factory near Henan Mingtai Aluminum Co., Ltd. According to the association, Mingtai Aluminum is China's second largest producer of rolled aluminum, which will seriously weaken the interests of domestic aluminum producers in Korea. Mingtai Aluminum produces 770,000 tons of rolled aluminum per year, which is equivalent to more than 80% of South Korea's annual production. Mingtai has established a local entity called Gwangyang Aluminium and has submitted a plan to local authorities to build a plant with an annual output of 20,000 tons on 20.5 acres of land at a cost of $35.2 million. Mingtai Aluminum's move is seen as the butterfly effect of US President Trump's overall tariff on imported aluminum this spring. Coupled with US sanctions on Chinese aluminum foil imports, Chinese producers have been looking for other large-scale aluminum production exports. Although South Korea has received a brief respite from the Trump administration's tariffs, it is still unable to successfully negotiate long-term exemptions.