Refined aluminium output in Shandong unaffected, price under pressure

Published: Dec 28, 2017 10:54 (GMT+8)
There would be little impact on the capacity of refined aluminium in Binzhou, Shandong province even though the city was said to have exceeded its allowed capacity, according to SMM senior analyst.

SHANGHAI, Dec 28 (SMM) – There would be little impact on the capacity of refined aluminium in Binzhou, Shandong province even though the city was said to have exceeded its allowed capacity, according to SMM senior analyst Liu Xiaolei.

In fact, he said that the capacity swap and increase in other regions should be paid more attention to.

China has completed 4.16 million mt of refined aluminium capacity swap in 2017, according to SMM research, with another 1.98 million mt of left. Inner Mongolia, Xinjiang and Shanxi provinces topped the list for capacity swap.

“Since the launch of production cut due to environmental production, around 1 million mt of refined aluminium capacity have been affected. However, this has not led to supply shortage and aluminium ingot inventory remained high,” Liu said.

He added that the increase of ingots inventory during late January to February next year could be remarkable and aluminium price is likely to be pressured. 

 


For news cooperation, please contact us by email: gaotian@smm.cn or service.en@smm.cn. 


 

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
India ADC 12 Holds Firm as LME Aluminium Falls; Tight Scrap Supply Limits Downside
11 hours ago
India ADC 12 Holds Firm as LME Aluminium Falls; Tight Scrap Supply Limits Downside
Read More
India ADC 12 Holds Firm as LME Aluminium Falls; Tight Scrap Supply Limits Downside
India ADC 12 Holds Firm as LME Aluminium Falls; Tight Scrap Supply Limits Downside
India ADC 12 prices remained relatively resilient despite a 1.2% decline in LME aluminium 3-month prices between September 24 and 30.
11 hours ago
Rio Tinto Secures Bell Bay Smelter Operations Through End-2031
12 hours ago
Rio Tinto Secures Bell Bay Smelter Operations Through End-2031
Read More
Rio Tinto Secures Bell Bay Smelter Operations Through End-2031
Rio Tinto Secures Bell Bay Smelter Operations Through End-2031
Rio Tinto announced on October 1 that it had reached agreements with the Tasmanian Government, the Australian Commonwealth Government and Hydro Tasmania to extend electricity supply to the Bell Bay aluminium smelter through the end of 2031. The two governments will also provide a combined A$200 million support package over five years, contributing A$100 million each. Commercial terms of the power agreement were not disclosed. Bell Bay produces around 190,000 tonnes of primary aluminium annually, while its existing electricity contract was due to expire at the end of 2026. The agreement removes the smelter’s immediate operational uncertainty. Bell Bay is the third major Australian aluminium smelter to receive government-backed support in 2026, following Boyne and Tomago, highlighting continued pressure from high electricity costs and international competition.
12 hours ago
Domestic Aluminum Ingot Accumulation After National Day Holiday Expected to Be Moderate and Controllable
Sep 30, 2026 22:03 (GMT+8)
Domestic Aluminum Ingot Accumulation After National Day Holiday Expected to Be Moderate and Controllable
Read More
Domestic Aluminum Ingot Accumulation After National Day Holiday Expected to Be Moderate and Controllable
Domestic Aluminum Ingot Accumulation After National Day Holiday Expected to Be Moderate and Controllable
head of the National Day holiday, domestic aluminum ingot inventories continued to set fresh year-to-date lows. According to SMM statistics, as of September 30, electrolytic aluminum ingot inventories in China's major consuming regions stood at 638,000 mt, down 36,000 mt from Monday and 40,000 mt from last Thursday. The pace of pre-holiday destocking was relatively fast overall, leaving ample buffer for inventory accumulation during the holiday...
Sep 30, 2026 22:03 (GMT+8)