Liaocheng begins implementing level I anti-smog response; Primary aluminium producers to remain unaffected
Liaocheng in the west of Shandong province, China, has reportedly begun to implement level I response to heavy smog from today onwards, December 20, except for those graded as A-level on environmental status, to strengthen production cuts.
This was implemented after the city issued a red alert, the highest in Beijing’s three tier warning system, on late Thursday. Weather forecasts showed heavy smog could strike the city in the week ahead.
However, the implementation of level I response to heavy smog is unlikely to affect primary aluminium producers in the city, such as Xinfa Group’s plants and Liaocheng Xinyuan Group’s facilities. They meet A-level grade given their standards on techniques, pollution treatment and emissions.
Xinfa’s alumina refinery, with the capacity of 3 million tonnes per year, however, will have to deepen the production cut to 50%, as it is categorised as C-level. Grade-B alumina refineries in the city will face a production cut of 30%.
LME aluminium regained the losses on Thursday; SHFE continued its upward momentum to close at RMB 14,200/t
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