China Nonferrous Metals News
Domestic primary aluminium smelters are taking measures to mitigate losses by either suspending operations or advancing maintenance plans in light of low prices (approximately RMB11,000/t). Several smelters have decided to run maintenance ahead of schedule, particularly those with old cells, as maintenance costs are lower than the cost of massive production cuts – relatively speaking.
Aladdiny survey:
Shanxi smelter – (60 ktpy capacity) cuts operations by 30 ktpy by overhauling 60 cells
Henan smelter – (580 ktpy capacity) cuts operations by 15 kt by maintaining some old cells
Sichuan smelter – (125 ktpy) cuts operations by 7 kt by suspending 8 x 300 kA cells.
According to Aladdiny, as of 7th April, total primary aluminium capacity cuts in China have reached 514 ktpy, with the potential for an additional 128 ktpy to be reduced in the short-term. Aladdiny takes the view that domestic aluminium production cuts will expand in the short- term.
