SPIC Ningxia plans to cut 50,000 tonnes of aluminium capacity in January
As reported by Shanghai Metals Market, SPIC Ningxia plans to cut production at its Wuzhong plant on account of high costs and sluggish prices of aluminium.
SPIC Ningxia, an aluminium smelter owned by China State Power Investment Corporation (SPIC) and Ningxia Power Investment Corporation, is set to cut aluminium capacity by 50,000 tonnes in January, 2019, a source told SMM. The smelter has an overall aluminium capacity by 990,000 tonnes currently.
China’s aluminium producers are set to cut another 800,000 tonnes per year of smelting capacity in coming months, according to an official at the industry body that organised a rare meeting of smelters on Friday.
In 2018, smelters by now have cut more than 3.2 million tonnes of capacity; about 80 per cent of it in the second half of the year.
“Capacity reduction will help to support aluminium prices... But the scale of price rebound will depend on the actual implementation of the cuts,” said analysts from CITIC Futures in a note.
Spot aluminium sellers in China show keenness to offload cargoes in the year-end: SMM
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