Huaren New Material resumes primary aluminum production
2023-03-16 11:46:04 [Print]
BEIJING (Asian Metal) 16 Mar 23 - Guizhou Huaren New Material Co., Ltd., one major primary aluminum producer in Southwest China, started production resumption at the end of February and predicts an output of around 12,500t of primary aluminum in March.
"Due to the power supply shortage in Guizhou in late 2022, we cut production since December upon the government's requirement. After we reduced production of 207 electrolytic cells of 500kA for 280,000 tons in total, we resumed production in late February with the restored power supply. However, we had only 88 electrolytic cells of 500kA in operation before resumption, and run 120 electrolytic cells of 500kA at present", a source from the company said, and added that they might not launch full production capacity of 500,000t of primary aluminum by the end of June as scheduled, because they still have some electrolytic cells to be overhauled.
The company, with an annual production capacity of 500,000t, produced about 365,500t in 2022 and around 10,000t in February 2023. They expect to produce nearly 12,500t this month, holding no stock now.
On Wednesday, the mainstream prices of Chinese aluminum ingot 99.7%min hovered at RMB18,260-18,360/t (USD2,644-2,659/t) delivered D/P, up by RMB40/t (USD5.8/t) from Tuesday. Given the current sluggish demand in the aluminum ingot market, insiders believe that the prevailing prices of Chinses primary aluminum would stably stand at a low level in the coming week.
"Due to the power supply shortage in Guizhou in late 2022, we cut production since December upon the government's requirement. After we reduced production of 207 electrolytic cells of 500kA for 280,000 tons in total, we resumed production in late February with the restored power supply. However, we had only 88 electrolytic cells of 500kA in operation before resumption, and run 120 electrolytic cells of 500kA at present", a source from the company said, and added that they might not launch full production capacity of 500,000t of primary aluminum by the end of June as scheduled, because they still have some electrolytic cells to be overhauled.
The company, with an annual production capacity of 500,000t, produced about 365,500t in 2022 and around 10,000t in February 2023. They expect to produce nearly 12,500t this month, holding no stock now.
On Wednesday, the mainstream prices of Chinese aluminum ingot 99.7%min hovered at RMB18,260-18,360/t (USD2,644-2,659/t) delivered D/P, up by RMB40/t (USD5.8/t) from Tuesday. Given the current sluggish demand in the aluminum ingot market, insiders believe that the prevailing prices of Chinses primary aluminum would stably stand at a low level in the coming week.
