Chalco to shut 10% alumina capacity on low prices

China Knowledge reported that Aluminum Corp of China Co Ltd is shutting about one million tonnes of alumina capacity temporarily in its Shandong plant since this month mainly due to low price of the chemical and high operating costs.

According to the report, the facilities at Shandong account for about 10% of total alumina capacity in Chalco. After the closure, Chalco's Shandong plant will have 200,000 tonnes of capacity, compared with the previous 1.5 million tonnes. It was reported that the plant has closed more than 300,000 tonnes of high cost alumina capacity so far.

The plant also has closed nearly 25,000 tonnes of primary aluminum capacity during the period. Meanwhile, about 40,000 tonnes of primary aluminum capacity has been shut in Chalco's Henan plant accounting for two thirds of the plant's total and it is most likely to cut 400,000 tonnes of alumina capacity in the following few days.

China's spot prices of alumina have fallen nearly 40% so far this year to about CNY 2,650 per ton as the increased supply from new capacity surpassed demand growth from the production of primary aluminum smelters.

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