SHANGHAI, Aug. 1 (SMM) – Production cuts at aluminum smelters in Xinjiang and Shandong will have knock-on effects on downstream processors, SMM understands.
The cuts will tighten aluminum liquid supply and thus allow smelters to ask nearby processing plants for higher aluminum liquid prices in H2 2017.
SMM learned one smelter in Shandong might hike aluminum liquid prices by around 100 yuan/tonne.
A few processors could pass higher costs to end-users, but most may be unable to do so, given the buyer’s market, SMM noted.
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