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In a Certain Period of Time, China Plans to Suspend Aluminum Production by the Scale of 800000 tons/year

On Dec., 21, 2018, China Nonferrous Metal Industry Association held a forum in Nanning, Guangxi, where part of backbone electrolytic aluminum enterprises were present. The forum talked about domestic and global trend of aluminium oxide and electrolytic aluminium and future trend of aluminum consumption. 20 backbone electrolytic aluminum enterprises including Aluminum Group, China Hongqiao, Xinfa Group, Hangzhou Jinjiang Group and East Hope took part in the forum. Experts from Beijing Antaike Information Co., Ltd. was invited to give a speech on aluminum market research.

According to onsite representatives, current domestic aluminum price is getting very close to the average cash cost line in this industry and operating pressure of enterprises is running to the limitation. The situation is even worse than the worst in 2015 Q4. Some enterprises have introduced “flexible production” moves since Q2, especially the scale of production reduction was further enlarged in H2. It is estimated that so far China has suspended production of electrolytic aluminum by the scale of 3.2 million tons/year, of which 80% was shut down in H2. In a certain period of time in the future, China plans to suspend electrolytic aluminum production by the scale of 800000 tons/year.

Attendee enterprises have confidence in the smooth and favorable development of Chinese economy in 2019. They are also optimistic about the potential of Chinese aluminum consumption. In order to ensure smooth and sound industrial operation, representatives brought up suggestions like adjusting electrolytic aluminum import and export policy, consistently broadening aluminum application scope and building fair and rational financial credit environment.