China’s Aluminum Output Fueled by Middle East’s Stranded Cargoes
A worker stands on bundles of aluminum ingots at a stockyard in Wuxi, China.
Photographer: Qilai Shen/BloombergChinese imports of the main raw material for aluminum jumped to a two-year high in March, as cargoes bound for smelters in the Middle East were rerouted to the world’s biggest producer.
The war in the Persian Gulf is driving more alumina to China, swelling the country’s surplus and keeping smelting margins elevated. Chinese aluminum output has surged as a result, and exports are soon expected to follow, a win for producers at a time when domestic stockpiles are building and the economy has slowed.