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Output constrain, not the best choice for aluminium companies
- China Aluminium Network
- Post Time: 2008/9/8
- Click Amount: 511
Under the co-blow of oil price and alumina price fall, August aluminium price slashed tremendously, below cost level added by export levy on aluminium alloy.
Low consumption rate is another factor that caused companies’ financial loss. However, this state can be eased by decrease of stock, which means that falling of aluminium price will continue before rise of consumption rate and reduce of stock volume.
therefore, output constrain is emerged, which, however, brings some unfavorable effects, such as loss of fixed market and customers, and needs time to recover the output capability.
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