According to data from the Statistics Office, the production of aluminum in China, the most important producing country, decreased slightly in June compared to the previous month, says Thu Lan Nguyen, head of FX investigation and Commerzbank raw materials.
Aluminum production in China remains a negative factor for prices
“However, this is not surprising, since the production had reached a new record in May. Since the aluminum industry is subject to a production limit imposed by the government of 45 million tons per year, the foundations must reduce their operations, otherwise, the limit would be exceeded.”
“In the last six months, production averaged 3.78 million tons per month, which would correspond to 45.4 million tons for the year. Therefore, a slight reduction in production in the second half of the year should be expected.”
“However, it remains to be seen if this will really happen. After all, the Chinese foundations have become somewhat more profitable again thanks to the fall in alumina prices. The current high level of aluminum production in China remains a negative factor for prices at the moment.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
