SHFE Aluminum to Strengthen (2017-9-4)

Sep 25, London Metal Exchange (LME): Total stocks at 241,375 tonnes, change 0 tonnes; On-warrant stocks at 226,825 tonnes; Cancelled warrants at 14,550 tonnes.

According to foreign media reports, the ERG Group plans to complete the second phase of its Pavlodar aluminum smelter by 2029. Daniyar Rakhmatullaev, Deputy General Manager for Strategy and Development at ERG, stated that the company intends to build the new facility at the site of its existing electrolysis plant in Kazakhstan. The project involves an estimated total investment of nearly $1 billion, with construction scheduled to begin in 2027 and completion expected between 2028 and 2029. Once operational, the new plant is projected to add 400,000 tonnes to annual aluminum output, bringing total annual capacity to approximately 650,000 tonnes—up from the current 250,000 tonnes. The company also plans to expand its value chain by using its own aluminum to manufacture automotive wheels. Rakhmatullaev indicated that the project would be financed through a combination of internal funds and borrowed capital.