Asian Metal News
Chalco Huarun, designed with 500 ktpy capacity, has postponed the its Phase III aluminium project (125 ktpy) until end June citing electricity price issues. The project was originally set to start on 1st June 2020,.
Chalco Huarun came online in Q3 2018 and is currently running at 250 ktpy, (half of its designed capacity,) due to relatively high electricity costs. According to an internal source, Chalco Huarun is now in negotiation with the local government and an electricity supplier, seeking a special electricity price deal. Once a deal is concluded, the company will be ready to start its 125 ktpy Phase III project.
Chalco Huarun produced 170 kt of aluminium ingot in 2019 with is May output at 20.8 kt.
Mainstream aluminium ingot transaction prices were RMB13,630~13,730/t at Shanghai warehouses this Monday, rising by RMB210/t from last Friday.
