Weak Price Force China Aluminum Smelters to Cut Output

(China Aluminum Network) China aluminum smelters may shut about 2 million tons of capacity to stop loss owing to weak aluminum price and less government support.

This move will slow down supply growth speed in China, the growth aluminum supply has stressed global aluminum price all the time.

For the past few years, Chinese government was seeking to solve over capacity issue of industrial metal which has been the primary task for current government. This is another reason further force smelters to restrain capacity.

A large smelter president said it is very common to cut 2 million tons of capacity in the first half year.

The industry information expected aluminum price was lower than almost all domestic full production smelters’ production cost.

The analyst stated that this year has shut down 400-500 thousand tons of aluminum capacity, the idled capacity may increase to 2 million ton in the second half year.

She said the newly added 2 million tons of capacity may extend to next year to put into production, while another lowcost 2 million tons of new capacity will go into operation as scheduled.

A senior executive of a certain Guizhou smelter said output cut may bring bigger survival chance to smelters, or may face bankruptcy.

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