SMM2, January 1 / PRNewswire-Asianet /-Aluminum Corporation of China issued an announcement on January 30 that it was affected by high electricity prices, regional environmental protection policies and market environment, and was based on the principle of maximizing benefits. Shandong Huayu Alloy Materials Co., Ltd., a holding subsidiary of Aluminum Corporation of China, has implemented elastic production in its annual production line of about 200000 tons of electrolytic aluminum. At present, the company is discussing with other shareholders in Shandong Huayu on the implementation of transformation and upgrading development.
According to a message sent by SMM on January 28, Shandong Huayu Aluminum Power Company was completely suspended from production on January 26, according to SMM, which involved an operating capacity of 100000 tons. Shandong Huayu Aluminum Power has a built production capacity of 220000 tons, with an operating capacity of 190000 tons before the production reduction in November 2018, 140000 tons after a 50, 000 tons reduction in November, and another 100000 tons in mid-December. According to SMM, Huayu has replaced 65000 indicators to Huayun, Inner Mongolia, and it is expected that the subsequent electrolytic aluminum production capacity indicators may still be used for replacement purposes.
On November 30, Aluminum Corporation of China Limited issued a notice on the implementation of flexible production in some electrolytic aluminum production lines, showing that due to the influence of market environment, environmental protection, production restriction, and other factors, in line with the principle of maximizing benefits, Chinalco decided to carry out elastic production of some electrolytic aluminum production lines in Shanxi Huasheng Aluminum Co., Ltd., Shandong Huayu Alloy Materials Co., Ltd., involving an electrolytic aluminum production capacity of about 470000 tons. The 470000 tons of elastic production reduction in Chinalco involved: 1. Shanxi Huasheng Aluminum Co., Ltd. has a production capacity of 30, 000 tons, Huasheng Aluminum has a built capacity of 225000 tons, and an operating capacity of 195000 tons after production reduction. 2. Shandong Huayu Alloy Materials Co., Ltd. has a production capacity of 50,000 tons, which was shut down on November 15. 3. Gansu Liancheng Aluminum Co., Ltd. has a production capacity of 390000 tons, has been shut down. As a result, this flexible production will not trigger a shortage of supply. (brief comment on SMM: detailed interpretation of 470000 tons of Elastic production by Aluminum Corporation of China "see details)
According to SMM, in addition to Shandong Huayu, Chinalco has recently cut production, as well as Shanxi Huasheng and Chinalco new materials in Shanxi. Among them, Shanxi Huasheng has built a production capacity of 225000, which has reduced its production capacity by 30,000 tons in November, and continues to shut down 45000 before the Spring Festival. Shut it all down by the end of March; Huazawa built a production capacity of 420000, first stop 100 troughs, involving a production capacity of about 75000, follow-up to be determined. SMM believes Chinalco's recent move to shut down high-cost capacity is due to losses on the one hand and the shift of indicators to the lower-cost southwest and Inner Mongolia regions on the other.
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