05 MAY 2016Shanghai Metals Market
What deters many Chinese aluminium smelters from restarting capacity? - SMM explains
Edited by : AL CIRCLE
1 min read
Profit at Chinese aluminium smelters has been expanding steadily thanks to sustainable aluminium price rise. However, many smelters have not shown strong interest in bringing idled capacity back online. Why?
The main reason is negotiations with power plants over preferential power tariffs are still dragging on, SMM learned.
Besides, continuous alumina price gains also leave those smelters whose costs are above 12,000 yuan per tonne hesitant about reopening.
Shandong Xinfa Group and Shandong Weiqiao Group will release new aluminium capacity in May, totaling 600,000-tpy. But this is not enough to fill in supply gap, SMM understands.
The main reason is negotiations with power plants over preferential power tariffs are still dragging on, SMM learned.
Besides, continuous alumina price gains also leave those smelters whose costs are above 12,000 yuan per tonne hesitant about reopening.
Shandong Xinfa Group and Shandong Weiqiao Group will release new aluminium capacity in May, totaling 600,000-tpy. But this is not enough to fill in supply gap, SMM understands.
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