Refined aluminium output in Shandong unaffected, price under pressure

Published: Dec 28, 2017 10:54
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 to learn 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
Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution
18 hours ago
Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution
Read More
Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution
Fed Governor Milan Pushes for Over 100 Basis Points Cut, Contradicts Barkin on Caution
Federal Reserve Governor Milan pointed out that it is necessary for the US Fed to cut interest rates by more than 100 basis points this year. At the same time, he is very much looking forward to the performance of Kevin Warsh as Fed Chairman. However, Richmond Fed President Barkin emphasized that monetary policy must remain cautious until inflation fully pulls back to the target level, thereby ensuring the stability of the labour market.
18 hours ago
Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation
18 hours ago
Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation
Read More
Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation
Democratic Senators Demand Delay in Fed Nomination Amid Criminal Investigation
All 11 Democratic members of the US Senate Banking Committee jointly sent a letter to the committee's chairman, Tim Scott, requesting that all nomination processes for the prospective Fed Chairman, Kevin Warsh, be postponed until the criminal investigation into current Fed Chairman Powell and other board members is concluded. However, Scott stated that Warsh's confirmation was a done deal.
18 hours ago
Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027
18 hours ago
Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027
Read More
Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027
Fed to Keep Large Banks' Capital Levels Unchanged, Postpones Stress Test Reforms Until 2027
The US Fed has announced that it will maintain the capital levels of large banks unchanged during the upcoming stress test cycle (corresponding to the 2026 cycle). At the same time, the US Fed is planning multidimensional reforms to this annual test, aiming to enhance its transparency. The US Fed's Vice Chair for Supervision, Bowman, revealed that adjustments to the stress capital buffer requirements for large banks will be postponed until 2027. This move is intended to provide the US Fed with sufficient time to evaluate potential flaws that may be exposed in its testing models when assessing banks' financial conditions under simulated economic downturn scenarios.
18 hours ago
Refined aluminium output in Shandong unaffected, price under pressure - Shanghai Metals Market (SMM)