Network Metals LLC

This morning we are hearing about some pushback from Chinese aluminum smelters, who are asking for the Chinese government to institute anti-dumping measures to guard against foreign imports dominating the Chinese market. This is an interesting reaction from the Chinese processors, if only because they reacted so strongly to instituted anti-dumping measures by the US, Canada and India, but not without merit. As the margin between domestically produced and imported aluminum grew in China, imports into China went up, especially during the Chinese government’s buying spree. Chinese aluminum exports were down 81% year over year for January-April 2009, so it is easy to see why Chinese smelters want to reduce imports of
aluminum into China. As a result we expect to see some further maneuvering of a combination of Chinese import/export tariffs, energy subsidies and further reserves buying.