CITIC: Aluminum Prices to Rise Higher than Expected on the Expanding Production Cuts of Aluminium in Yunnan

Published: Feb 22, 2023 10:26

Save

The CITIC Securities Research Report pointed out that the scale of reduction in aluminium production in Yunnan Province is expected to reduce Chinese aluminium capacity by 700,000-800,000 mt.

The CITIC Securities Research Report pointed out that the scale of reduction in aluminium production in Yunnan Province is expected to reduce Chinese aluminium capacity by 700,000-800,000 mt, which will help ease the pressure on domestic aluminium supply. The contradiction between the production ramp up of aluminium and power supply cannot be resolved in the short term, and the production cut of aluminium in Yunnan may be normalised. CITIC expects that the supply of aluminium will be tighter in 2023, and aluminium prices are expected to be higher than expected.

Market

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

6 hours ago

SHFE Aluminum Edged Up After Halting Its Decline, Spot Aluminum Stabilized and Improved [SMM South China Spot Aluminum Daily Review]

6 hours ago

SHFE Cast Aluminum Alloy Warrants Drop by 2,047 mt to 42,944 mt on March 24

[SMM Flash News] SHFE data showed that as of March 24, the total registered volume of cast aluminum alloy warrants was 42,944 mt, a decrease of 2,047 mt from the previous trading day. By region, the total registered volume was Shanghai (2,755 mt, down 422 mt), Guangdong (17,257 mt, down 210 mt), Jiangsu (4,209 mt, down 813 mt), Zhejiang (13,672 mt, down 483 mt), Chongqing (3,723 mt, down 119 mt), and Sichuan (1,327 mt, increase 0 mt).

6 hours ago

7 hours ago

What Could Change if Middle East Aluminum Trade Reroutes—and Supply Becomes Substitutable

Strait of Hormuz disruptions and Iran tensions are driving up aluminum prices and premiums. Aluminium Bahrain and Qatalum have cut output, while feedstock is tight. Rerouting via Port of Sohar or Saudi ports raises costs and delays. Buyers are turning to China, India, Russia, Canada, and scrap to offset risk. Prolonged disruption could reduce Middle East market share and reprice it as higher-risk supply.

7 hours ago