Aluminium Operating Capacity in Feb to Fall as Hydropower Shortage Expands

SHANGHAI, Feb 9 (SMM) - According to SMM statistics, by the beginning of February, domestic installed aluminium capacity reached 45.26 million mt (including the production capacity that has been installed but has not been put into production). The domestic operating aluminium capacity was 40.3 million mt, and the national operating rate averaged about 89%. In January, the proportion of aluminium liquid fell 7.2 percentage points month-on-month to 59.2% amid seasonal low and Chinese New Year holiday.

Entering February, operating capacity may decline slightly to 40.1 million mt due to expectations of a 10-20% production cut in Yunnan and the slow resumption in Guizhou as the hydropower shortage in south-west China expands. The output in February (28 calendar days) is expected to increase 4.1% year-on-year to around 3.07 million mt.