Drought to Shut Some Aluminum Capacity, China Business Says

Some Chinese aluminum smelters in mountainous southwestern regions will partly closed because of power shortages caused by a worsening drought, the China Business News reported today.

Guangxi Baise Yinhai Aluminum Industry Co. has received notice from the local government to partly shut down to save energy, the report said, citing an official at the plant it didn’t name. The company, with 200,000 metric tons of annual capacity, has reduced output by 40 percent, it said. A call to the company was not answered.

Guangxi Aluminum’s capacity accounts for 4 percent of the national total, the report said. Smelters in Yunnan and Guizhou provinces may also receive notices to cut output, it said.

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