SHANGHAI, Oct. 29 (SMM) – Despite recent reports of production cuts or closures in China, aluminum prices remain stuck in a downward track, a trend unlikely to reverse anytime soon, an analyst at Jinyuan Futures told SMM in latest interview.
Some smelters, unable to bear pain from tumbling aluminum prices, have resorted to cuts or shutdowns. Others, however, keep adding new capacity. The tug of war thus began.
Obviously, capacity idled is well below capacity added. Some 2 million tonnes of aluminum capacity has been cut in China so far this year, but new capacity has hit 3 million tonnes, Zhu Pengbo, analyst from Jinyuan Futures said. In fact, additional 4 million tonnes capacity will be added next year, Zhu predicted.
Falling costs will make the situation only even worse for prices of the light metal.
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