Yunnan requests aluminum producers to reduce power usage
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Update time : 2022-09-14 22:19:50
Yunnan, a province in southwestern China, requested aluminum producers to reduce power usage due to the increasing energy prices.
Yunnan has an annual operating capacity of 5.25 million tons of electrolytic aluminum, accounting for around 10% of China’s total capacity.
Shanghai Metals Market expected that China’s September aluminum production will drop by 3.4% month on month to 3.37 million tons following Yunnan’s power cut. It stays uncertain whether the power curbs will continue or not.
Aluminum producers were requested to reduce power usage by about 10% from their normal consumption from September 13 to September 14.
The power curb affects about 10% of the smelter's capacity with a yearly capacity of 900,000 tons of electrolytic aluminum.
Price should be supported by the production cuts and disappearing cost advantage from hydropower; however, the increasing inventories weighed on the Chinese market as well. The soaring energy prices have significant impacts on all of the aluminum production globally.
Production of LME deliverable KAS-branded aluminium at Kazakhstan’s Eurasian Resources Group has reached the four-million-tonnes milestone
