SHANGHAI, Jul. 13 (SMM) - Rumor has it Shandong will slash aluminum output by over 2 million tonnes, SMM understands.
Shandong Weiqiao and Xinfa Group will reportedly cut output by 1.4 million tonnes and 600,000 tonnes, respectively. On top of this news, LME aluminum rebounded on July 13.
But SMM warns investors should refrain from overt optimism after this news. There will over 3 million-tpy of legal aluminum capacity under construction during 2017-2018, of which, about 1 million-tpy will come online in the second half of 2017.
Since aluminum ingot inventories are still on the rise for now, risks mount for bullish bets, SMM said.
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