Yunnan Shenhuo resumes 220,000 tonnes of aluminium capacity as power crisis eases

Yunnan is home to around 10% of China's aluminium production capacity. In May 2021, the province was plagued by drought as a result of the Yunnan government had adopted initiatives to minimise the electrical consumption of aluminium smelters in the province.

However, as per the latest reports, Yunnan's electricity crisis has lessened since the beginning of 2022, since water availability has been greater than typical throughout the dry season. Yunnan Shenhuo Aluminium resumed 220,000 tonnes of aluminium capacity due to a better power supply.

The remaining 150,000 tonnes of additional aluminium capacity was just placed into service by the corporation. By the end of April, a total of 900,000 tonnes of aluminium capacity is expected to be put into service. Yunnan Electricity Grid has restored power to aluminium smelters in Yunnan Province in a systematic manner beginning February 2, 2022.

Owing to insufficient rainfall in May 2021, Yunnan's aluminium production capacity was 3.86 million tonnes by the end of April. The production capacity restriction was projected to be around 76,000-380,000 tonnes (lowering the load by roughly 2 per cent -10 per cent), with a one-month effect duration.