Aluminium producers in Yunnan still waiting for official notice for production resumption – industry insiders
COMMODITIES
Aluminium producers in Yunnan still waiting for official notice for production resumption – industry insiders
COMMODITIES

Aluminium producers in Yunnan still waiting for official notice for production resumption – industry insiders

 

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There has been online speculation recently that Southwest China’s Yunnan province will allocate 2 million kW electric power for electrolytic aluminium companies to resume production.

Commodity consultancy Shanghai Metals Market said, based on its survey, the amount of water resources in Yunnan have increased recently and hydro power generation has gradually improved.

Electrolytic aluminum companies in the province are waiting for official notice of production resumption, with the amount of power supply and the scale of production resumption still unknown, and there may by a small scale of production resumption in late June, said Shanghai Metals Market. 

In March this year, Yunnan province ordered aluminum producers to further dramatically slash or even suspend production to cut energy consumption as the province faces a severe shortage of hydro power generation. That’s the second round of production cuts in six months. Starting Sept. 10, the provincial government told businesses to lower their use of electricity by 10% over five days after a record heat wave disrupted production and economic activity across the region. Companies were then told to reduce electricity use by an additional 15% to 30% starting Sept 15.