SHANGHAI, Feb 1 (SMM) – The Aluminum Corp of China (Chalco) said on Wednesday January 30 that it was implementing "flexible production" on about 200,000 mt/year of capacity at its Shandong Huayu facility due to high electricity tariffs, environmental restrictions and the market environment.
Shandong Huayu Aluminum and Electricity, with built capacity of 220,000 mt/year, suspended all output on Wednesday January 26, SMM learned. The plant's capacity of 100,000 mt/year operated after production cuts in December and November.
Huayu's capacity cut of 50,000 mt/year in November was included in Chalco's announcement of 470,000-mt capacity cut on November 30.
Prices of electricity and coal are relatively high in Shandong and Huayu is located close to the smog-plagued 2+26 cities that are subjected to rigorous environmental restrictions. Those factors prompted Chalco to stop production at Huayu.
SMM learned that Chalco would swap 650,000 mt/year of capacity to Inner Mongolia.