[Al] Domestic Aluminum Inventory on July 9th

Hong Kong, July&nbsp;10 -- Chinese aluminum trading company Beijing Xinheng Group started operations at a new 650,000 mt/year recycled aluminum plant in Xining, Qinghai province, mid-June, a company official said Thursday. 
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&nbsp;&nbsp;&nbsp; The Yuan 8.6 billion ($1.26 billion) plant, a joint venture between Xinheng and the Aluminum Corporation of China or Chinalco, is forecast to generate revenue of Yuan 9.7 billion/year and profit of Yuan 800 million/year.
&nbsp;&nbsp;&nbsp; Xinheng declined to disclose its output target for the first year or speculate on what impact tight global aluminum scrap supply would have. 
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&nbsp;&nbsp;&nbsp; Local media have reported that the plant would have to import aluminum scrap for recycling. However, the global economic slowdown has reduced supply from the dismantling sector worldwide. 
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&nbsp;&nbsp;&nbsp; A source at Minmetals predicted China's recycled aluminum output in 2009 would fall below 2008 levels as a result. 
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&nbsp;&nbsp;&nbsp; &quot;Also China's customs has tightened aluminum scrap import controls since early 2009 on environmental grounds. This, plus weak refined aluminum prices, will trim recycled aluminum output this year,&quot; the source said. 
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&nbsp;&nbsp;&nbsp; Chines aluminum scrap importers are required to pay pre-import inspection fees of $150/ticket and post-import inspection fees of $30-50/mt. 
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&nbsp;&nbsp;&nbsp; Chinese domestic refined aluminum price stood at Yuan 13,615/mt ($1,993/mt) Thursday, down Yuan 30 from Wednesday. The price averaged Yuan 19,000/mt in 2008. 
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&nbsp;&nbsp;&nbsp; China imported 683,843 mt aluminum scrap over January-May this year, down 24% year on year, customs figures showed. In full-year 2008, the country imported 2.15 million mt, up 3% from 2007, while recycled aluminum output in 2008 totaled 2.7 million mt, down 1.8% year on year.
&nbsp;&nbsp;&nbsp; (Source: Platts)
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