SHANGHAI, Nov. 4 (SMM) – SHFE aluminum responded positively to Aloca and Century Aluminum cut news, closing Tuesday up 60 yuan per tonne after days of losses. How long will the rally last?
The rise will prove just short-lived, SMM noted. In fact, the rise is more of a technical correction. Moreover, the amount of capacity cuts announced by these two global giants are just an iceberg of global surplus. As long as smelters in China do not cut output on a large scale, prices will see no turnaround in sight, SMM understood.
Century Aluminum announced that it will close one electrolytic cell at its Sebree aluminum smelter in Kentucky before the end of the year, its third cut in just two months.
Alcoa announced just a week ago that it will shut down 224,000-tpy Mount Holly smelter in South Carolina before the end of the year.
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