Aluminium prices stabilized at a low level

Aluminium prices at LME and SHFE have stopped slumping at a low level since mid October, after major aluminium enterprises reduced production on the market downturn.
   
Under the current economic recession and financial crisis, output cut is not big enough to reverse the situation of surplus supply, said market analysts here, adding that it is hard to improve aluminium price in a short period.
       
Currently, the whole aluminium industry is losing money.
   
Chalco(ACH.NYSE, 2600.HK, 601600.SH), the largest aluminium producer in China, has scheduled to reduce or halt production in provinces of Shandong, Henan, Liaoning and Inter Mongolia by 720,000 tons, about 18 percent of the company's overall production capacity.
   
The company also said there would be a further output cut if necessary.
   
Aluminum producers in China have so far planned to cut output by a total of 1.37 million tons. If all output cut plans are put in place, it will be favorable to the improvement of the long- and mid-term supply pattern and prop up the aluminum price to a certain extent.

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