AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- One of the biggest aluminium stockpiles is lying idle in an industrial park in Vietnam.
- The stockpile is capable enough to fulfil the annual demand of India.
- The Vietnamese authorities state that the stock was collected from China by Global Vietnam Aluminium Ltd. (GVA).
Aluminium prices have witnessed a significant recovery of late, jumping from the 11-week low of US$2,554 per tonne on November 4 to nearly US$2,700 per tonne towards the end of November. The spike in aluminium prices came after an explosion at a Chinese aluminium plant on Thursday evening resulted in halt of production, sparking supply disruption woes.
Despite the recent spike, the prices of industrial metal remain well below 2008-highs of US$3,200 hit in October amid weaker demand in China and strong US dollar.
Aluminium stockpile in Vietnam grabs attention
Amid the ongoing global supply crunch, nearly US$5 billion worth of aluminium stockpile swathed in black tarpaulin at an industrial park in Vietnam has grabbed international attention.
Must Read: ASX-aluminium stocks rise on the back of 10-year high aluminium prices
The significant interest in Vietnam's aluminium stockpiles can be chalked up to a strong demand for industrial metal as almost all industries across the world are struggling to get the required supplies of aluminium. With economies across the globe making a solid recovery from the pandemic, the demand for aluminium has witnessed a significant rise.
On the supply side, China’s production curbs to limit its emission levels, as part of the country's long-term goal to attain carbon neutrality, have additionally disturbed the supply.
However, apart from Vietnam’s stockpile, ports from Detroit and New Orleans in the US, Malaysia’s Port Klang, and Rotterdam in Europe also hold hundreds of thousands of tons of aluminium. However, Vietnam's ginormous hoard is something that’s grabbing the world’s attention on a lage sc.
Stockpile equals india’s annual aluminium consumption
Duncan Hobbs, a London-based commodities analyst, believes that Vietnam's stockpile is equal to the annual consumption of India, the world's second-most populous nation in the world.
Source: © Josefbosak | Megapixl.com
The current hoard was seized as half of a US-led anti-dumping investigation that took place in 2019. The Vietnamese authorities state that it was collected from China by Global Vietnam Aluminium Ltd., often called GVA.
Related read: Is 2021 going to be a sparkling year for aluminium?
Nearly 1.8 million tons of aluminium stays in storage under the safety of guards, with only little quantities released to GVA for its manufacturing line. With the metal witnessing a massive price surge, the worth of the aluminium stockpile has jumped nearly 50% as it was impounded.
Related read: ASX-aluminium stocks rise on the back of 10-year high aluminium prices
