Chinese Aluminium Producers Reopen Closed Plants after Price Rebounds

SHANGHAI, Jul. 23 (SMM) - Some Chinese aluminium producers are reopening closed capacities after recent price rebounds narrowed their losses, Shanghai Metals Market (SMM) has learned.

Guangxi Baise Yinhai Aluminium Co. restarted a 100,000-tpy plant in late June and is now running at a total capacity of 200,000 tpy.

Guangxi Laibin Yinhai Aluminum Co. is scheduled to restart a halted 180,000-tpy plant in August, by which time its total working capacity would add up to 240,000 tpy.

It was reported in June that a total of 1.33 million tpy aluminium-making capacities in China were shut or were planned to be.

Actual cuts were limited, though, to only 400,000 tpy, and were mainly concentrated in Henan province, SMM learned.

Aluminium Corporation of China (Chalco) was said to be planning to reduce capacities of 300,000 tpy at its two aluminium plants in cities of Guizhou and Zunyi given high costs and small power subsidies there.

``So far, whether or not such a cut plan has been carried out remains unknown,’’ Eric Zhang, SMM’s aluminium analyst said.