China¡¯s Aluminum Smelters May Restart Idled Capacity, CRU Says

A total of about 3 million metric tons of idled aluminum capacity in China may be restarted amid a rebound in demand for the metal in the world¡¯s third-largest economy, according to CRU International Ltd.

About 1 million tons, half in Henan, is being restarted, with ramp up times to full output taking one to three months, CRU analyst Wan Ling said today in an interview. Whether a further 2 million tons, located from Shandong to Sichuan, was restarted was ¡°more unpredictable,¡± Wan said from Beijing.

The global recession cut metals demand as China¡¯s exports collapsed, forcing smelters to suspend output. About 7.1 million tons of aluminum-making capacity had been halted, the Shanghai Securities News said March 30, citing unidentified officials.

Restarting the idled capacity ¡°depends on prices,¡± Wan said by phone. ¡°If domestic prices retreat amid an expected jump in imports in the next few months, it¡¯s a question whether this capacity will eventually be restarted.¡±

Aluminum futures in Shanghai have gained about 13 percent this year after China¡¯s central government purchased 590,000 tons of the metal, or more than 4 percent of the country¡¯s output last year, for strategic reserves.

Henan, China¡¯s biggest aluminum-producing province, plans to stockpile 500,000 tons of the metal to help smelters that were forced to halt operations because of low prices, the state- run Xinhua News Agency reported last month.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.