
On Saturday, August 7, Guangxi Power Grid Corp sent a notice directing aluminium smelters in Guangxi region to reduce average electricity loads by more than 30 per cent by August 15. This move comes as a part of the effort to cut electricity usage during peak times, said consultancies AZ China and MySteel.

This new power consumption restriction imposed on aluminium producers by southern China’s Guangxi region could temporarily shut down about half a million tonnes of annual smelting capacity, pointed out consultancies. The curbs may also exacerbate the tight aluminium supply in China, the world’s biggest producer and consumer of the metal.
AZ China said about 415,500 tonnes of annual aluminium smelting capacity could be affected across six Guangxi producers. As of Monday, 85,000 tonnes had already been cut, it added.
MySteel noted that previous power curbs in Guangxi last month were barely adhered to by smelters; so, strict implementation of latest measures could see a suspension of more than 500,000 tonnes of capacity.
However, it is still not clear that for how long the restrictions would be in place. Guangxi Power Grid Corp did not answer calls seeking comment.
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