Aluminium Corp of China Ltd (Chalco) has formed a coalition with eleven other local smelters that aims to price 1.04 million tonnes of aluminium this year, aiming to boost local spot aluminium prices, according to market sources.
The smelters plan to deliver that volume of aluminium to warehouses in trading hubs like Shanghai and Guangdong, where buyers can then take delivery, according to sources.
“The original plan was that 13 local smelters, including Chalco, would hand in 1.18 million tonnes of aluminium ingots to these warehouses before the end of March, but one company decided not to participate, so the total amount decreased to 1.04 million tonnes,” a source familiar with the situation said.
It also involves requesting that buyers use prices published by Chalco, which is China's largest aluminium producer, for transactions, instead of prices quoted on the Shanghai Futures Exchange or Changjiang Nonferrous Market.
But Chalco played down questions...