Huge aluminium stockpile from Mexico reaches Vietnam

Giant stockpile of aluminium, which until a few months back was lying almost hidden under plastic wraps in a remote Mexican desert, has been shipped to a port in southern Vietnam, report sources aware of the matter. According to shipping records, the stockpile is estimated to weigh around 500,000 tonnes.

The unusually large aluminium shipments sparked curiosity among traders and industry experts about the legitimacy of the entire consignment. They have also reportedly voiced their concern about the possible impact of the same on the global trade of the light metal. According to Global Trade Information Services, which tracks world-wide trade, about 91% of aluminium-extrusions manufactured in Mexico was shipped to Vietnam this year though a sea route rarely used for aluminium in recent years.

The aluminium stockpile when in Mexico was the subject of a Wall Street Journal article wherein it was stated that there could be possible link of the stacked aluminium with China's Liu Zhongtian, chairman of aluminium giant China Zhongwang Holdings. Executives from the American aluminium industry accused Mr. Liu of shipping the metal to Mexico in order to disguise its Chinese origins and evade American tariffs— a charge China Zhongwang denied.

Exports of aluminium extrusions from China to the U.S. attract antidumping tariffs as high as 374%, whereas those from Vietnam are subject to only about 5% tariffs.

The journey of the extruded aluminium products from Mexico to Vietnam coincided with a substantial surge in the metal's exports to Vietnam from China and the U.S. as well, via ports near businesses owned/associated with Mr. Liu, reported shipping companies and people aware of the matter.

China Zhongwang spokeswoman Harriet Lau told media the company has no connection to the aluminium stockpile in the Vietnamese port. “Financially, it does not make commercial sense to stockpile aluminium products,” she said, since shipping and warehousing commodities of such quantities is costly and does not generate any profit for the company.

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