CHINA August 02 2017 6:32 PM
BEIJING (Scrap Register): The Ministry of Environmental Protection of China has rejected the approval of Shanxi China Huarun Co. aluminum project of 500000 tons per year planned by the Aluminum Corporation of China.
The major reason sited for the rejection of the plan was sited to be Shanxi province does not comply with capacity exchange rules that enable producers to replace outdated capacity with more efficient units.
The current move by the government to reject the approval has boosted the prices and is expected to support Aluminum prices in the coming period.
The Shanxi Development and Reform Commission had breached rules by registering Huarun's aluminum project in January, before it had been either approved by the ministry or confirmed as eligible under the output capacity swap scheme, the government quoted on a report.
“The MEP report on Huarun has bolstered SHFE aluminum prices. Due to China's tighter reins on environment protection and the resultant news of other domestic aluminum capacity shutting down, sentiment in the near term will be bullish,” Chinese Aluminum producers, quoted to Platts.