SMM advises investors to avoid overt optimism post Shandong’s aluminium production cut
If reports are to be believed, China’s Shandong will cut the production of aluminium by over 2 million tonnes. According to the latest news published by Shanghai Metals Market (SMM), China’s aluminium giant Shandong Weiqiao is expected to slash its aluminium production by 1.4 million tonnes.
Xinfa Group is estimated to cut 600,000 tonnes of aluminium. SMM cautions investors to refrain from overt optimism following the news of the production cut.
It is projected that there will be more than 3 million tonnes per annum of legal aluminium capacity under construction during 2017-2018. Aluminium capacity of about one million tonnes per annum will come online in the second half of this year.
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Recently, Shandong Weiqiao Group announced that it will cut aluminium capacity by 250,000 tonnes. This decision comes as a huge boost to the government’s aluminium supply side reform initiatives.
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