Aluminum prices' fall sets stage for drop in China's "semi" exports

Traders are preparing for a dip in China exports of semi-finished aluminum products, or semis, following a fall in prices for the metal at the London Metal Exchange (LME), Reuters reported, citing industry sources and traders. Chinese exporters step up sales when LME prices are high, while overseas buyers purchase more Chinese semis when global premiums for the primary metal are high–but both global premiums and LME prices have fallen. Lower availability achieved through paring of exports could stop the premium from falling further, traders said.