China Shanxi cuts power at aluminium smelters

Aluminium smelters in Shanxi province have received less power supplies since last week, suggesting that aluminium production in some provinces may fall in the summer, which will trim China's output growth.

A smaller-than-expected growth of aluminium production in China, the world's top maker of the metal which is used in building, packaging and transport industries, could fuel metal prices.

The Shanxi government, preparing peak consumption in the summer and the Beijing Olympics by tightening control over power supply, had ordered local power authorities to stop supplies to plants that had been ordered to close but were still operating, a report on the province's official website.

New capacity for high electricity users, including aluminium smelters, needs to get approval in advance to ensure power supplies, it said.

Coal shortages have led to record power shortfalls in Shanxi and the coal-rich region had to ration supplies.

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