Affected by the uncertainties brought by the China-US trade war, the aluminum prices have fluctuated more frequently in recent days. However, many Chinese aluminum enterprises have encountered long-term money loss which has accelerated them to reduce the production capacity of high-cost, resulting in the aluminum supply rise to be restricted and increasing the possibilities of aluminum price rise in the future.
According to relevant statistics, in 2019 China's new electrolytic aluminum production capacity was 2.3 million tons, mainly in Inner Mongolia and Yunnan. In the first half of the year, the growth rate of new production capacity was negative.
Although the profitability of the whole industry has improved, it was not enough to stimulate new production capacity and idle production capacity to accelerate production. At least China's electrolytic aluminum supply was not flexible in the first half of the year.
China’s aluminum prices likely to rise considerably in future
17 May 2019 16:54 reported by Dennis Zhang
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