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Aluminium supply woes keep growing as China orders output cuts

From think.ing.com

Aluminium smelters in Southwest China’s Yunnan province, which accounts for 11% of China’s aluminium output, have been required by the government to reduce their operating rates due to hydropower shortages in the drought-stricken province. The smelters have been ordered to reduce the use of electricity by 15% to 30% from last week, which is expected to cut 800,000 tonnes to 1.6 million tonnes of aluminium production capacity. The output reductions in Yunnan come after Sichuan smelters cut 920,000 tonnes of capacity in August, accounting for 2% of China’s total. The duration of the power cuts in Yunnan has not been ... (full story)

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  • Category: Fundamental Analysis