Dec 01, 2021 06:00:00

In fact, there is an aluminum storage in Vietnam that has surplus to solve the global aluminum shortage.

It was reported in October 2021 that China's aluminum production

declined for the fifth straight month and that aluminum prices hit a high for the first time in 13 years. It is predicted that a large aluminum shortage will occur worldwide in the future, but in fact, Vietnam has a large amount of aluminum stored in Vietnam to solve the aluminum shortage for some reason.

The $ 5 billion hoard of metal the world wants but can't have --MINING.COM
https://www.mining.com/web/the-5-billion-hoard-of-metal-the-world-wants-but-cant-have/

It is said that there is a mountain of metal worth about 5 billion dollars (about 560 billion yen) in an industrial complex located about an hour's drive from Ho Chi Minh City, Vietnam to the South China Sea. The following is a satellite image, the upper one was taken in March 2014, and the lower one was taken in January 2021. In the image taken in 2021, you can see a pile of metal that has never existed in the past. Detroit, USA and Port Klang, Malaysia were famous as aluminum storage, but this Vietnamese storage is considered to be larger.

According to Duncan Hobbs, an analyst at Concord Resources, a London-based metal trader, aluminum has been in the most serious shortage in the last 20 years, but aluminum in Vietnam's storage is more than overwhelmed. There is.

Aluminum stored in Vietnam was confiscated by a Chinese billionaire in a

2019 US government-led investigation of unfair bargaining. Aluminum is believed to have been stored from China to the hands of Vietnamese aluminum manufacturer Global Vietnam Aluminum (GVA), but initial investigation into GVA has failed and is ongoing. Therefore, 1.8 million tons of aluminum are stored untouched under the supervision of the authorities.

Aluminum has been in excess for more than a decade, but it is believed that it will be stored around 2025 and turn into a shortage. Against this background, Vietnam's aluminum storage is of great interest.

Supply and demand for aluminum has been volatile over the last decade. The last decade has been a period of economic downturn due to the global financial crisis, and automakers have reduced their purchases of aluminum. However, on the other hand, aluminum producers continued to produce aluminum in anticipation of purchase from the manufacturer, as it would cost a lot more to turn off the power of the smelter. As a result, unnecessary aluminum was produced in excess, but trading companies saw this and took the action of 'buying surplus metal and storing it until the time when demand increased.' .. Then, in the 2010s, when the economy began to recover and manufacturers such as Coca-Cola tried to buy aluminum, 'the port has a large amount of aluminum stored, but the market is short of aluminum.' The situation happened. After that, aluminum was released to the market when the economy recovered in earnest, but by this time the shortage had already been resolved, so the market was flooded with aluminum and the price of aluminum fell further.

As of 2021, aluminum storage and inventories in the United States and Malaysia have been confirmed to be declining rapidly, which is a cause for concern, but the biggest concern in 2021 is the supply restraint in China. China is aiming to reduce carbon dioxide emissions and is expected to become an aluminum importer rather than an aluminum exporter in the future. For this reason, the balance between global demand and supply is expected to be disrupted in the future, and great potential has been found in Vietnam's storage.

Meanwhile, business intelligence company CRU, which focuses on the global mining, metal and fertilizer markets, has excluded Vietnam's aluminum storage from inventory estimates. This is because aluminum is more than 10 years old and is believed to need to be scrapped.