SHANGHAI, May 10 (SMM) – Rumor has been circulating since last Friday that Shandong issued a notice on Implementation Program for Illegal Aluminum Project Crackdown Special Action.
Illegal aluminum capacity in China is concentrated in Shandong, Xinjiang and Inner Mongolia.
Chalco: China to Slash Aluminum Production during Winter Heating Season
Currently, aluminum capacity already built in Shandong totals 11.9 million tonnes, of which 11.5 million tonnes are in operation. It is estimated that some 2-5 million tonnes of existing aluminum capacity in the province are illegal. This makes Shandong one of the main targets in supply side reform.
Henan Reports Mixed Alumina, Aluminum and Aluminum Semis Output in Q1
With supply side reform under way, release of aluminum capacity will be restricted significantly after mid and late June. It is expected that aluminum production will be controlled in the second half of the year due to winter heating season. As such, aluminum price outlook might be more positive in H2 2017.
The article is edited by SMM and is provided for information purpose only. SMM assumes no liability and does not warrant the accuracy, reliability or completeness of information contained or quoted in the article, either express or implied. SMM further disclaims any liability for losses in connection with the information contained or quoted in the article.
For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.
For queries, please contact William Gu at williamgu@smm.cn
For more information on how to access our research reports, please email service.en@smm.cn