02 SEPTEMBER 2014Shanghai Metal Market
Chalco suspends aluminum expansions in Xinjiang on costly transportation costs
Edited by : AL CIRCLE
1 min read
Aluminum Corporation of China (Chalco) has suspended aluminum expansions in Xinjiang on costly transportation costs, wenhua.com quoted Helen Lau, an analyst at securities company UOB Kay Hian, as saying today.
Building smelters in coal-rich Xinjiang can help cut fuel costs, but this advantage has been offset by high alumina transportation costs arising from its remoteness, Helen Lau noted.
Chalco reopened high-cost smelters in Guizhou, Shaanxi, Guangxi and Liaoning after securing power tariff subsidies from local governments, which have allowed these smelters to get rid of losses, Helen Lau added.
Building smelters in coal-rich Xinjiang can help cut fuel costs, but this advantage has been offset by high alumina transportation costs arising from its remoteness, Helen Lau noted.
Chalco reopened high-cost smelters in Guizhou, Shaanxi, Guangxi and Liaoning after securing power tariff subsidies from local governments, which have allowed these smelters to get rid of losses, Helen Lau added.
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