SHANGHAI, Aug. 1 (SMM) – Production cuts at aluminum smelters in Xinjiang and Shandong will have knock-on effects on downstream processors, SMM understands.
Government Crackdowns to Affect Mainly Private Aluminum Smelters with Captive Power Plants, SMM Says
The cuts will tighten aluminum liquid supply and thus allow smelters to ask nearby processing plants for higher aluminum liquid prices in H2 2017.
Profit Expands Further at Aluminum Smelters in China, SMM Says
SMM learned one smelter in Shandong might hike aluminum liquid prices by around 100 yuan/tonne.
A few processors could pass higher costs to end-users, but most may be unable to do so, given the buyer’s market, SMM noted.
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