03 JULY 2013Bloomberg
China Hongqiao adding aluminum output as global smelters cut
Edited by : AL CIRCLE
2 min read
China Hongqiao Group Ltd. , China’s largest non-state aluminum producer, and competitors are boosting or maintaining output as the government seeks to trim capacity amid a global glut.
China Hongqiao’s production will rise about 10 percent to 2 million metric tons this year, said Christine Wong, executive director secretary and head of investor relations. Xinfa Group and East Hope Group said they are not planning cuts. The companies are three of China’s five biggest aluminum makers.
Their stance may hamper curtailment efforts by top global producers including Aluminum Corp. of China Ltd., United Co. Rusal and Alcoa Inc. who are cutting output to ease worldwide over supply. China’s Premier Li Keqiang wants to bring forward to the end of 2014 a target to eliminate outdated capacity in industries including aluminum.
“Chalco and China will need to do a lot more” to trim excess production, Vanessa Lau, a senior analyst at Sanford C. Bernstein & Co., said from Hong Kong, referring to Aluminum Corp. of China, or Chalco. If other China producers continue to expand, then there’s not much net aluminum capacity being closed, she said. Aluminum has declined 12 percent this year in London, weighed down by global output that’s exceeded demand for the past eight years, according to data compiled by Bloomberg.
Production worldwide will reach a record near 50 million tons this year, up from 45 million in 2012, Austin, Texas-based Harbor Intelligence forecast.
China Hongqiao’s production will rise about 10 percent to 2 million metric tons this year, said Christine Wong, executive director secretary and head of investor relations. Xinfa Group and East Hope Group said they are not planning cuts. The companies are three of China’s five biggest aluminum makers.
Their stance may hamper curtailment efforts by top global producers including Aluminum Corp. of China Ltd., United Co. Rusal and Alcoa Inc. who are cutting output to ease worldwide over supply. China’s Premier Li Keqiang wants to bring forward to the end of 2014 a target to eliminate outdated capacity in industries including aluminum.
“Chalco and China will need to do a lot more” to trim excess production, Vanessa Lau, a senior analyst at Sanford C. Bernstein & Co., said from Hong Kong, referring to Aluminum Corp. of China, or Chalco. If other China producers continue to expand, then there’s not much net aluminum capacity being closed, she said. Aluminum has declined 12 percent this year in London, weighed down by global output that’s exceeded demand for the past eight years, according to data compiled by Bloomberg.
Production worldwide will reach a record near 50 million tons this year, up from 45 million in 2012, Austin, Texas-based Harbor Intelligence forecast.
Previous article
Alcoa breaks ground on $52 million aluminum plant in NY
Next articleNorth American aluminum demand 2% up during Jan-Apr: Aluminum Association
Grow with
AL Circle
