SHANGHAI,Sept.26th(CBI China) -- On September 22nd, Luo Jianchuan, CEO of CHALCO, said the company has no plans to cut refined aluminum production on a large scale despite weakening prices.
Domestic aluminum prices have been softening since the beginning of 2008. Although 20 top domestic refined aluminum producers were determined to reduce production to 5% - 10% during July, the actual capacity involved in production cuts was limited. Up to now, aluminum prices have fallen nearly 25% since July. Luo said it was reasonable for those smelters running at a loss to lower production. CHALCO, however, was able to absorb losses caused by low market prices, keep the company stable, and grow its market share. In this context, CHALCO has no large scale production cuts planned. CHALCO's decision will put more negative pressures on domestic refined aluminum markets and leaves little possibility for domestic aluminum prices to rebound in the short term.
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