SHANGHAI, Aug. 17 (SMM) – Positive market fundamentals will underpin aluminum prices around 12,500 yuan per tonne in the second half of the year, according to China Hongqiao Group CEO Zhang Bo.

“Aluminum price decline is possible, but any downside room will be small since downstream demand will grow faster than capacity,” Chinanews quoted Zhang as saying. 

China Hongqiao Group Targets Higher Aluminum Capacity and 100% Alumina Self-Sufficiency

Zhang deems opinions on overcapacity in China aluminum industry as groundless, adding that capacity utilization rate in the industry has exceeded 80%. 

The group reported 25.38 billion yuan in revenues during H1 2016, up 13% from a year ago, and 3.28 billion in net profit, a 20.7% jump from a year ago.

Chalco Cuts Aluminum Prices in Major Markets on August 17 

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