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Home / The aluminum market fluctuates with US decisions

The aluminum market fluctuates with US decisions

Date posted: 09/ 01/ 2019 - The poster: admin

In early March 2018, US President Donald Trump signed a decree to impose a 25% import tax on steel and 10% on aluminum to combat cheap imports, especially from China. This move has added an atmosphere of tension in trade relations between the world’s leading economy and China.

This policy also affected the price of aluminum. After the US imposed sanctions on the Rusal Group – the world’s second-largest aluminum producer and supplied about 7% of global aluminum output, aluminum prices surged on both London and Shanghai in June-June. 2018. The price peaked on April 19, 2018 was $ 2,602 a ton.

However, after that, aluminum prices fell sharply. By December 20, the US announced that it would remove sanctions against Russia’s Rusal manufacturer, which put the metal down to a 16-month low at $ 1,905 a ton on the London Metal Exchange (LME).

Experts said that the world price of aluminum dropped sharply due to the increase in selling pressure after the US President warned that it would impose billions of new tariffs if the trade agreement with China did not bring positive results. . Meanwhile, China is the world’s largest industrial metal consumer, accounting for more than half of global aluminum demand.

Vietnam is also one of the countries affected by the policies of the world giants on the aluminum market. However, according to Dr. Huynh The Du – Fulbright University Lecturer, this trade war will be “both positive and negative”.

Cheap aluminum flooded the market

Vietnam has many risks when it becomes China’s “backyard”. The abundance of domestic goods sources has led China to promote the “wave” of excess exports to the world, including Vietnam.

In addition, the other disadvantage makes it difficult for domestic aluminum products to compete with imported products of the same type as an increase in value-added VAT VAT refunds for Chinese exports. from September 2018, from 9% to 13%.

Difficulties make businesses worry now is the situation of shoddy goods pouring into the market instead of standard products. If the importation of low-quality, low-quality shaped aluminum bars continues to be maintained, domestic aluminum bar-forming units, directly imported from foreign countries will face risks from production restrictions. business comes to a halt for a long time.

Currently, Chinese shaped aluminum products are imported and sold in Vietnam market always cheaper than products produced by domestic enterprises, when the import tax on aluminum and products is equal to aluminum from China is 0% (according to ACFTA tax rate). Besides, a large amount of Chinese aluminum imported through Lang Son and Mong Cai border gates incorrectly declared quantity or non-quota lines to evade 10% VAT, which greatly affected manufacturing enterprises. , doing genuine business in Vietnam.

The cheap Chinese aluminum flowing into Vietnam caused the customs to have a written request to “tighten” the import of this item last year, and at the same time check the signs of violation in the declaration of goods codes to avoid tax and time. Commercial fraud.

Opportunities for Vietnam’s aluminum industry

Mr. Tran Dung – Director of Ngoc Diep Aluminum Joint Stock Company of Ngoc Diep Group said that the long-term difficulties of Vietnamese enterprises are still weak in technology and depend heavily on imported raw materials, so they cannot actively source goods. .

On November 28, 2018, the Trade Protection Department received applications from domestic aluminum producers on trade remedies for the requirement of applying anti-dumping measures on shaped aluminum products. Made from China. According to Mr. Dung, Vietnamese aluminum producers have support from state management agencies, contributing to promoting the development of the aluminum industry.

In order to take advantage and be able to penetrate this fastidious market, businesses need to innovate and update new technology trends and have a suitable roadmap, Mr. Tran Dung said.

With Ngoc Diep aluminum, the group also invests and produces aluminum on modern high-tech lines and advanced equipment. The enterprise has 3 production factories with a total area of ​​150,000m2 in Pho Noi industrial zone (Van Lam – Hung Yen).

In particular, Dinostar aluminum factory is one of the largest and most modern factories in the field of aluminum production in Vietnam. This factory has a complete closed production system from Billet casting, extrusion of aluminum, powder coating until finished products, can supply more than 55,000 tons of aluminum and industrial aluminum construction each market. year. The production line is equipped with a closed clean room (Cleanroom) to ensure production according to international standards.

Besides the aluminum construction products, industrial aluminum, Dinostar aluminum factory also provides the market of aluminum Billet products (aluminum ingots), produced from 100% ingot materials imported directly from Australia, Russia and the Middle East countries.

“While Chinese aluminum products dominate the market, Vietnamese products are weak at home. Viet maintains and affirms its brand as a long-term strategy, requiring businesses to research. save thoroughly, “said Mr. Tran Dung.

Being a multidisciplinary corporation, Ngoc Diep has advantages in producing carton packaging (Ngoc Diep Packaging), manufacturing, installing and constructing door and wall systems (Ngocdiep Window); consulting, design and construction of office, family and school furniture products (Ngoc Diep Furniture). In addition to maintaining strong business segments, the Group also encroached on new business segments such as aluminum construction, industrial aluminum, aluminum billet (aluminum ingot) …

According to Vnexpress.net

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