SHANGHAI, Sep 25 (SMM) – All aluminium processing mills in Jiaozuo of Henan province have been closed as of September 24 and aluminium processors in Tianjin are imposed with a 50% output cut from September 25, as cities close to Beijing strengthened environmental curbs before the National Day on October 1.
SMM assessed that controls on aluminium processing in Jiaozuo of Henan are the strictest in the pre-holiday anti-smog campaign, and may impact local aluminium consumption by close to 10,000 mt.
Alumina producers in Shanxi and Shandong provinces were also required to halve production, SMM learned on September 25, which is expected to reduce output by 140,000 mt in Shanxi and 320,000 mt in Shandong.
Production of prebaked anode, raw material for aluminium smelting, in Shandong and Henan provinces is currently under a curtailment of 50%.
Large producers of aluminium strip, plate in Shandong, and Gongyi, Zhengzhou of Henan, though unaffected by environmental cuts, faced shipment restrictions, and this may push up their inventories of finished products.
SMM expects the round of cutbacks in Beijing, Tianjin, Hebei and surrounding cities to be lifted by October 3.
Environmental factors are also likely to affect downstream restocking and slow the decrease in aluminium social inventories.
SMM will release the weekly changes in China’s social inventories of primary aluminium, aluminium billet on Thursday September 26.