Column: China’s export tax bombshell rocks aluminum market
China's announcement on Friday may have major long-term ramifications for the global aluminum supply chain, writes Andy Home.
This was originally posted by Visual Capitalist.
This infographic shows estimated aluminum smelter production by country in 2023, based on data from the most recent U.S. Geological Survey (USGS) Mineral Commodity Summaries, published in January 2024.
From this data, we can see that China leads as the top producer, accounting for nearly 60% of the world’s smelter capacity. Its neighbor India is the second-largest producer, making only a tenth of China’s output.
Responsible for 5% of global aluminum output, Russia has been targeted by recent sanctions from the U.S. and the UK.
The sanctions include prohibiting metal-trading exchanges from accepting new aluminum produced by Russia and barring the import of the Russian metal into the U.S. and Britain. The actions are aimed at disrupting Russian export revenue amid Moscow’s ongoing invasion of Ukraine.
Aluminum is the primary material used for making cans, foil, and many other products. It originates from bauxites, rocks composed of aluminum oxides, and various minerals.
Approximately 25% of annually produced aluminum is utilized by the construction industry, while another 23% is allocated to vehicle frames, wires, wheels, and other components within the transportation sector. Aluminum foil, cans, and packaging constitute another significant end-use category, accounting for 17% of consumption.
Despite its extensive use, aluminum is still plentiful. Aluminum is the world’s most common metal by crustal abundance, making up 8.2% of the Earth’s crust.
According to the USGS, global resources of bauxite are estimated to be between 55 billion and 75 billion tonnes and are sufficient to meet world demand for metal well into the future.
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