As we noted previously, Chinese steel exports fell to a five-year low last month. During the winter months, China’s curtailing its polluting industrial capacity in several industries including steel and aluminum in a bid to address rising pollution levels. We have seen the capacity cuts impact China’s steel exports. However, China’s capacity cuts aren’t having a major impact on its aluminum exports.
In January, China exported 445,000 metric tons of unwrought aluminum—a 14.1% increase YoY (year-over-year). Exports also rose compared to the sequential month. China’s aluminum exports rose 4.5% YoY in 2017.
It’s worth noting that the winter month capacity cuts that started in mid-November will last until the middle of March. So, December and January were the two months when the capacity cuts were in place for the entire month. China’s aluminum exports rose 12.8% and 14.1% YoY in December and January, respectively.
Higher Chinese aluminum exports are a major challenge for aluminum producers (S32) (AWC) like Alcoa (AA), Century Aluminum (CENX), and Norsk Hydro (NHYDY). Higher Chinese aluminum exports haven’t had a material impact on aluminum prices in the past few months.
Higher Chinese aluminum exports are a risk for aluminum markets. The markets have found a way to live with Chinese aluminum exports—at least for now. Looking at individual stocks, a lot of negatives already seem to be part of Alcoa’s valuation. Read What’s Ahead for Alcoa after a Tough January? to learn about Alcoa’s short-term and long-term drivers.
Next, we’ll discuss China’s January copper imports.
On February 7, 2018, Credit Suisse upgraded Cleveland-Cliffs stock two notches from “underperform” to “outperform.” It also raised the stock’s target price by 80% from $5.0 to $9.0.
Verizon Communications stock (VZ) closed down 2.09% on Tuesday after the leading US mobile carrier reported mixed results for the first quarter of 2019 before the market bell yesterday.
Several European auto companies want Nokia’s (NOK) patent business subjected to an antitrust probe.
The first-quarter semiconductor earnings season has begun, and the stock market is showing bullish sentiment as investors buy ahead of earnings releases.
Netflix (NFLX) is working its way through a series of price increases in several markets, including the United States and parts of Europe.
Netflix (NFLX) is aiming to add 14.6 million paying subscribers in the first six months of 2019.
Earlier today, the second-largest US automaker, Ford Motor Company (F), announced a plan to invest $500 million in Plymouth-based automotive company Rivian.