CHINA August 07 2017 2:26 PM
BEIJING (Scrap Register): China's Shandong province was planning to restrict the Aluminum and Alumina production capacity from November 2017 to March 2018, and this move has made the risk of prices volatility to increase, as per the State Development and Investment Corporation (SDIC).
"Market players are waiting for news on an estimated 1 million mt/year of aluminum smelting capacity in Inner Mongolia that has breached state rules. This, plus the government's circulars [on outdated aluminum capacity shutdown and output cuts] has resulted in speculative activity," SDIC quoted.
A new smelting capacity of 305000 tons per year in June was added by China, which lifted the national smelting capacity to 44.978 million tons per year, as per Titanium Valley Nonferrous Metal Exchange Center.
It is expected that the production restriction news will have an impact in the increase of prices hike in the H2, with prices likely rising further to Yuan 16,000/mt or above.