China's Binzhou to cut 1.6mtpy aluminium capacity; alumina price to be further supported

Binzhou city in China’s Shandong province will halt a further 1.6 million tonnes per year (tpy) of aluminium capacity and at least 3 million tpy of alumina capacity as part of the winter cuts from November 15 to March 15, 2018, according to an official announcement on Friday October 13.

The additional 1.6 million tonnes is part of a total 2.57 million tpy of aluminium capacity cuts announced in the notice; the latter figure accounts for 34.7% of the entire 7.41 million tpy aluminium capacity of the affected producers. The total amount of stalled capacity has been calculated by the number of electrolysis cells that have been cut. The local government has published a detailed list of the producers involved and the capacity that will be cut. Included in the official list is 500,000 tpy from Shandong Wudi Qixing Tech Aluminium which was believed to have been suspended in March due to the company’s bankruptcy, according to market sources.  Shandong Wudi Qixing Tech Aluminium is working through a bankruptcy reorganisation stage, according to a notice published on the National Bankrupt Enterprises Recombination Cases website.  “It is hard to tell at this stage how much...

Published

Echo Ma

Susan Zou

October 16, 2017

16:20 GMT

Shanghai