Yunnan Shenhuo cuts primary aluminum production
2023-03-02 12:03:11 [Print]
BEIJING (Asian Metal) 2 Mar 23 - Yunnan Shenhuo Aluminum Co., Ltd., one of the major primary aluminum producers in South China, began to reduce production on February 18 and expects to produce about 42,500t of primary aluminum in March.
"Due to the power shortage in Yunnan, we began to cut production on February 18 at the request of the government, and completed the reduction on February 27. We cut a total of 198,000t of primary aluminum capacity this time, involving 147 electrolytic cells of 500kA. We produced about 60,000t of primary aluminum in February, basically the same as January," a source from the company said, adding that the output might decrease to about 43,500t in March.
With an annual production capacity of 900,000t and 670 electrolytic cells of 500kA, the company produced about 761,000t in 2022 and holds no stock now.
On Wednesday, mainstream prices for Chinese aluminum ingot 99.7%min in warehouse Guangzhou stood at RMB18,390-18,490/t (USD2,667-2,682/t) EXW D/P, up by RMB120/t (USD17.41/t) from Tuesday. As the demand of downstream customers keeps rising, the consumption of primary aluminum will increase, and insiders reckon that prices for Chinese primary aluminum would move up in the following week.
"Due to the power shortage in Yunnan, we began to cut production on February 18 at the request of the government, and completed the reduction on February 27. We cut a total of 198,000t of primary aluminum capacity this time, involving 147 electrolytic cells of 500kA. We produced about 60,000t of primary aluminum in February, basically the same as January," a source from the company said, adding that the output might decrease to about 43,500t in March.
With an annual production capacity of 900,000t and 670 electrolytic cells of 500kA, the company produced about 761,000t in 2022 and holds no stock now.
On Wednesday, mainstream prices for Chinese aluminum ingot 99.7%min in warehouse Guangzhou stood at RMB18,390-18,490/t (USD2,667-2,682/t) EXW D/P, up by RMB120/t (USD17.41/t) from Tuesday. As the demand of downstream customers keeps rising, the consumption of primary aluminum will increase, and insiders reckon that prices for Chinese primary aluminum would move up in the following week.
