SHANGHAI, Apr. 26 (SMM) – With China’s supply side reform under way, SMM has revised its projections for new aluminum capacity nationwide down from 4.9 million tonnes to 4.15 million tonnes this year.
The forecast for new aluminum capacity is potentially at risk of being cut further as the supply side reform may spread to more regions after recent suspensions of illegal aluminum projects under construction in Xinjiang.
For now, the ongoing supply side reform, which has offered support to aluminum prices, has little impact on supply. In the medium and long term, supply side reform will have bigger impact on new capacity than on operational capacity, SMM pointed out.
China’s aluminum output increased 23.0% from a year ago to 3.11 million tonnes in March, and rose 22.1% year-on-year to 8.99 million tonnes in Q1, SMM data showed.
SMM expects China’s aluminum output to increase 21.9% year-on-year to 3.04 million tonnes in April.
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