SMM survey: Aluminium Smelters in Guizhou still Plagued by Power Shortfalls

SHANGHAI, Feb 24 (SMM) - SMM data showed that the installed aluminium capacity in Guizhou stands at 1.77 million mt, of which 336,000 mt was transferred from Inner Mongolia and Shandong at the end of last year and the beginning of this year. Roughly 40% of power supply in Guizhou comes from hydropower. In view of hydropower shortfalls and capacity bottlenecks of thermal power, the power supply to industrial enterprises is unlikely to pick up significantly any time soon.  Some smelters took the opportunity to overhaul their electrolytic cells and replace their cathodes. It is expected that the power supply will not fully recover until the end of May and smelters will be able to run at full capacity in June-July. In addition, 236,000 mt of aluminium capacity, which was transferred from a smelter in Shandong, is waiting to be put into operation. Even if the local power supply returns to normal, the 236,000 mt of capacity is not allowed to operate until the smelter in Shandong shut downs the same amount of capacity.