In the recent months, Chinese government has reiterated and been pushing the execution of the controlling policies on energy consumption and environmental protection (the 'Double Control' policies). Together with the already soaring international aluminum price, these policies are expected to further boost up the production costs of electrolytic aluminum and aluminum profiles in the country. The raw aluminum billets in South China rose by USD105-125 per ton in the past week. Many aluminum extruders have either suspended new orders or significantly raised the EXW price of aluminum profiles.
With the Chinese Government's realization of its commitment to the control of Carbon Dioxide Emission, more stringent policies and execution schedules are likely to take effect in the coming years. The industry of building materials, such as aluminum profiles, ceramics, steel products, etc., will see a series of upgradation and cruel survival games.