Environmental Drive Also Affects New Capacity in Aluminum Processing Sector

Aluminium Ingot January Production Analysis & February Forecast

According to SMM's research findings, Yunnan Province is currently experiencing a dry season, with hydropower contribution remaining at a relatively low level. Enterprises have no immediate plans for production resumption and await clearer policy guidance from the power sector.

The implementation of Indonesia's ban on bauxite exports since June last year has led to bauxite surplus, brought challenges to consume domestically as the Indonesia's alumina plants have limited capacity. Ronald Sulistyanto, Chairman of the Indonesian Bauxite and Iron Ore Entrepreneurs Association (Asosiasi Pengusaha Bauksit dan Bijih Besi Indonesia - APB3I), highlighted the struggle to secure external investment for alumina plant projects, while some entrepreneurs are forced to cut costs or halt production. However, there is hope for relief through potential relaxation of the export ban policy. Efforts are underway to boost alumina production capacity, although challenges persist in addressing the surplus bauxite issue.

Hebei will carry out a new round of air environment law enforcement special crackdown across the province, starting from Oct. 1.

Environmental checks did not impact output of main industrial products and are not the direct reason behind higher product prices, an official from Ministry of Environmental Protection (MEP) said.

Henan Province has released Industrial Enterprise Off-Peak Production Implementation Program in Autumn and Winter 2017-2018 (draft for comments).

Yunnan Province issued a notice on September 4 to push for elimination of outdated aluminum and steel capacity.

LME aluminum will trade at USD 2,005-2,035/mt on Thursday, and SHFE 1710 aluminum will regain losses seen on Wednesday’s night trading, with price estimated at RMB 16,000-16,250/mt. 

A 6.6-magnitue earthquake shocked Jinghe County, Bortala Mongol Autonomous Prefecture, Xinjiang at 07:27 am August 9.

Rumor has it Shandong will slash aluminum output by over 2 million tonnes, SMM understands.