[Al Price] Will Spreading Production Cuts Lift Aluminum Prices?

SHANGHAI, Jul. 27 (SMM) – More aluminum smelters have joined recent wave of production cuts, bringing total idled aluminum capacity in China to 1.83 million tonnes since late last year, SMM’s latest statistics showed. Will aluminum prices draw support?

Capacity expansions and slowing consumption will pressure aluminum prices for the rest of the year, SMM’s aluminum research team said. 

Another 1 million tonnes of aluminum capacity might be shut down later this year, SMM estimates. The lost production, however, will be more than offset by coming online of over 2 million tonnes of capacity in H2. 

Besides, aluminum consumption in H2 is expected to be weaker than in H1 since aluminum semis exports might not be as strong as in H1, another drag on the light metal. 

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