China likely to concentrate Aluminum smelting capacity

CHINA July 18 2016 4:30 PM

BEIJING(Scrap Register): In the fourth quarter when the current slack domestic buying season is over, the restart of mothballed aluminum smelting capacity in China will likely be concentrated, said the China Aluminum Association (CAA). Last year many smelters in China halted production or cutting output due to the falling refined aluminum prices.

But with domestic aluminum prices at Yuan 12,740/mt ($1,911/mt) as of end-June, up Yuan 1,790/mt from January, and reports this week of a shortage of aluminum ingot as more companies buy molten aluminum, so the sector will start to put unused capacity back into production, the CAA added.

While ingots are more easily delivered, molten aluminum can save Yuan 800-Yuan 1,200/mt ($120-$180/mt), boosting smelters' profits aluminum smelting capacity in China produces molten aluminum instead of ingots, tightening the supply.