
Restrictions on power usage in China have resulted in a 7 per cent domestic annual aluminium production capacity cut so far this year. This news has come after Wood Mackenzie consultancy revealed the outcome of its comprehensive studies on the impact of China’s energy crunch on the domestic metals sector.

"We identified around 3.2 million tonnes per annum (of aluminium) capacity was cut so far this year, of which only a little has been restarted," Wood Mackenzie said.
The consultancy added, "We also expect more (aluminium production) suspensions in Yunnan (province) in the fourth quarter as the impact of insufficient hydropower supply has been exacerbated by the dry season."
China has restricted electricity consumption for high energy-intensive sectors to reduce carbon emissions and reserve electricity for residents ahead of the Winter Heating Season.
Power shortages are still continuing, but energy cutbacks are not as severe as was in September. Occasional power rationing is likely to last till the second quarter of 2022.
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