Author: Paul Ploumis08 Jul 2014 Last updated at 02:30:49 GMT
BEIJING (Scrap Monster): The expected Chinese aluminum surplus in 2014 is likely to get reduced, according to most recent analysis. The robust demand from transport sector and the closure of more facilities may reduce the aluminum surplus from earlier projected 1 million tonnes to less than 500,000 tonnes.
According to sources, almost 2 million tonnes of high-cost smelter facilities were idled in the country between end-2013 and May this year. This followed the sharp fall in aluminum prices. The prices had touched a 5-year low during March this year. However, almost 500,000 tonnes of idled smelters returned to operation following the recovery in prices. The aluminum prices have already recovered nearly 15% from the March lows.