[Al] Rio Tinto: China’s Aluminum Capacity Utilization Rate Has Reached 66%

SHANGHAI, May 20 -- Rio Tinto, the third largest ore operator in the world, said the capacity utilization rate of Chinese aluminum smelters has reached 66% in April.

    An analyst from Aluminum Co. of China Ltd. (CHALCO) said on May 13th that China restarted 1.4 million mt idled capacity in April. Alcoa said last week supply surplus still existed in the global aluminum market, so it would be necessary for Chinese smelters to restart the capacity.

    Wen Xianjun, Vice President of China Nonferrous Metal Industry Association, said on May 12th that the State Reserve Bureau will end the aluminum reserve program unless the aluminum price fell below RMB 11,000/mt. However, current aluminum price remains high. Domestic aluminum price has risen by nearly 11% since the government put forward the reserve plans.

    Although steel consumption improved in auto and home appliance sectors, copper consumption recorded no significant improvements currently. Copper imports soared in 1Q due to the shortages of scrap copper and production cuts at smelters. According to the latest data from China Customs, Chinese copper imports have hit a record high for three straight months.

    (Edited by CBI China)