Asian Metal News
Jinning Al-Mg New Materials at Zhongning County, Ningxia, designed with 300 ktpy primary aluminium capacity, has decided to suspend production cuts of 100 ktpy capacity.
The company originally planned to suspend 100 ktpy primary aluminium capacity in late August and transfer the correspondent capacity to an IM smelter, but the plan has yet to be approved by the local government.
The company is barely profitable due to high electricity costs. Production cuts will reduce the efficiency of electricity usage, falling by 4% to be under 90% and increase overall production costs. The company has been operating at 280 ktpy capacity since 2019.
Jinning has 282 sets of 400 kA electrolytic cells, it produced 23 kt of primary aluminium in October, the same as September. The company currently holds no stock; 25% of its products are in the form of liquid aluminium with the remaining 75% in aluminium ingots. Jinning produced 280 kt primary aluminium in 2018, and its 2019 output is expected to be the same.
Mainstream aluminium ingot transaction prices were RMB 13,900~14,000/t at Shanghai warehouses on Monday, a decline of RMB 50/t from Monday.