Yunnan Province in China has decided to further cut aluminum production, with an accumulative reduction of more than 40%. After the production cut last September, Yunnan Province reduced production by 600,000 to 700,000 tons this time.

The production cut will reduce the operating capacity of the aluminum industry in China, which will offset the increase in supply from the work resumption and new production capacity in other regions. Therefore, the further production cut in Yunnan was expected to support aluminum prices amid the current recovering steel market.