SPIC Ningxia To Cut 50 Thousand TPA Of Aluminium Smelting Capacity In January

108 Buddhist stupas at Qingtongxia, Ningxia, China

Following a recent retreat in production to match falling domestic prices for the metal, yet another aluminium smelter in the People’s Republic of China is planning to draw down production in the coming weeks.

A source revealed to Shanghai Metals Market earlier this week that SPIC Ningxia will slice 50 thousand metric tons per annum of production capacity.

The smelter, which is a joint venture between the state-owned State Power Investment Corp (SPIC) and Ningxia Power Investment Corporation, has a nameplate capacity of 990 thousand metric tons.

Repeating a common theme, the source said that SPIC Ninxia laid the necessity of production cuts at the feet of skyrocketing costs, shrinking margins, falling aluminium prices, all of which are exacerbated by tepid domestic demand.

“Capacity reduction will help to support aluminium prices,” opined a CITIC Futures analyst in a recent note. “But the scale of price rebound will depend on the actual implementation of the cuts.”

News of SPIC Ninxia comes just days after a meeting of China’s top producers yielded an agreement to cut 800 thousand metric tons per annum of aluminium smelting capacity in the next several weeks. So far in 2018, Chinese smelters have shuttered over 3.2 million metric tons per annum of aluminium smelting capacity, with the vast majority of cuts (80 percent) coming in the back half of the year. So far the year has seen over 9 percent of China’s total smelting capacity taken offline.

The plant in question is located in Wuzhong, a prefecture-level city in the Ningxia Hui Autonomous Region (NHAR) of northwest China.



Comments are closed here.

SUBSCRIBE
Events
LME
  • Cash Buyer 1839.50 0.00%
  • 3-Months Buyer 1867.00 -0.05%

LME Official Price(USD/tonne) for 16 January 2019

CRU World Aluminium

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close