Longquan Aluminium and Huomeihongjun Aluminium & Electricity to cut output

Hongkong invested Longquan Aluminium and Huomeihongjun Aluminium & Electricity to cut output that locate in Henan have decided to cut output for the weak aluminium price.

A manager of Hongkong Longquan Aluminium said that the company had shut 40,000T capability, accounting for 7% of the total 600,000T.

¡°We¡¯re trying to avoid worse deficit¡±, he said; and added that the term of shut up was uncertain, which would be decided by the price. A number of smelters in China are in loss, and the spot price currently is 13,850 yuan/ton (2,028 dollars), lower than the cost of 16,000-18,000 yuan/ton.

The LME 3-month aluminium futures has down 35%, following the dollar record high of 3,380 in July.

If this trend lasts, more smelting capability will be spared in the coming months; as a result, output of this year can not reach the indicated 14000000-14500000 tons.

A manager of Huomeihongjun Aluminium & Electricity Group said that it had reduced electric supply to its manufacturing companies to cut aluminium output by 10-20%. The group, owned by China Power Investment Corporation, produces 300,000 tons aluminium every year.

He added that the company had also postponed the aluminium smelting plant of 150,000 tons annual output.

China, at present, has aluminium output 17000000-18000000 tons, higher than 16000000 tons by the end of last year.

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