Chalco and Other Smelters Plan to Withhold 1.2 Million Ton of Aluminum Stocks to Boost Prices

 

However, SMM sees little chance that these smelters will retain such sizable inventories. 

 

Tight liquidity at higher-cost smelters incurring losses makes it impossible for them to hold such huge volumes. Lower-cost smelters, though still profitable, are similarly ill-prepared to tie up such large volumes of cash in unsold inventories. Doing so right now is even more ill-advised, given the potential slump in demand coming around the Chinese New Year, February 19 this year, SMM understands.