Aluminum price soars as China cancels tax incentive on exports
The export tax rebate was also removed for copper and lowered for some refined oil, solar, battery and non-metallic mineral products.
France’s Aluminium Dunkerque has agreed to sell some of its aluminium production to commodity trader and miner Glencore, which will supply one of Europe’s largest aluminium producers with alumina used to make the metal from 2023.
The multi-year contract for Glencore to sell alumina to France’s Aluminium Dunkerque a “portion” of its needs comes at a time of disruptions to commodity exports such as alumina after Russia invaded Ukraine.
Aluminium Dunkerque (AD) has also agreed to a multi-year deal to sell “a portion” of its aluminium to London-listed Glencore in a multi-year agreement “consistent with AD’s existing customer commitments and focused on value-added products.”
“Commercial terms of the contracts are confidential. All prior arrangements between AD and Glencore have been canceled,” Aluminium Dunkerque said on Monday.
“We believe these arrangements will increase the diversity of Aluminium Dunkerque’s counterparties at a time of considerable market volatility,” the company said.
Aluminium Dunkerque, located near the northern French port of Dunkirk, has capacity to produce 286,000 tonnes of aluminium a year, annual turnover of about $800 million and more than 600 full-time employees.
Private equity firm American Industrial Partners (AIP) acquired the Dunkirk smelter last year following a debt default by a unit of previous owner GFG Alliance.
(By Pratima Desai; Editing by Jonathan Oatis and Mark Porter)
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