Chinese Alumina Refineries To Cut Output To Deal With Sluggish Market

SHANGHAI, May 29 (SMM) –Maintenance and output cuts in some regions slowed down the decline in alumina prices, but are insufficient to reverse the downward trend. Some refineries with poor profit margins in Shanxi and Henan intend to expand capacity so as to dilute their production costs, but this could compound oversupply and weigh on alumina prices. Others will have to cut production or shut down to deal with sluggish market. With pessimism still prevailing, SMM sees alumina prices at downside risk this week.