In March, Chinese imports of alumina, the primary raw material for aluminum, reached a two-year peak. This surge occurred as shipments originally destined for smelters in the Middle East were diverted to China, the world’s largest aluminum producer.
The ongoing conflict in the Persian Gulf region is a key factor, directing increased volumes of alumina towards China. This influx is expanding the nation’s surplus and maintaining high smelting profit margins. Consequently, China’s aluminum output has seen a significant increase, with a rise in exports anticipated in the near future. This situation presents a favorable outcome for producers, particularly amidst growing domestic stockpiles and a decelerating economy.
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