Reasons for Decline in Primary Aluminum Output

(China Aluminum Network) Primary aluminum output reached 1415.5 thousand tons in October increased 17% yoy while decreased 7% on a month-on-month basis. In June the output reached to 1596 thousand tons and created record high but kept dropping for 4 months.

To sum up, there are two main reasons: the first one is the declining of domestic primary aluminum price from 18000 yuan/ton to 16000 yuan/ton leads to profits reduction and many enterprises shut down. The second one is power shortage in South results in insufficient operating rate in Guangxi and Guizhou then cause decline in primary aluminum output.

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