Chinese power shortages could cost Chalco 30,000t of aluminum production

China's biggest aluminum manufacturer, Aluminum Corp of China (Chalco), warned that it may lose 30,000 metric tons of production after it suspended production at two operations in the Shanxi Province because of a power shortage.

China depends on coal for almost 80% of its electrical power generation. State Grid public relations official Lio Xinfang said their coal stocks are still enough for more than 10 days of consumption.

Shanxi Huaze Aluminum & Power suspended 25% of its 280,000 metric annual ton capacity as of July 18 and Shanxi Huasheng Aluminum halted 22% of its 220,000 metric ton capacity, according to parent Chalco.

The power cuts are expected to last until September as the power shortage is expected to remain throughout the summer.

China's production of aluminum was originally predicted to increase from 12.6 million metric tons this year to 15.5 million metric tons, according to London-based CRU International.

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