GREY:EORBF - Post by User
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HBird7on Feb 16, 2017 11:34am
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Article from METALBULLETIN, February 13th, 2017
Article from METALBULLETIN, February 13th, 2017 FORECAST: China’s plan to cut alumina, aluminium capacity could be implemented in Q4 – sources
China’s environmental authority has sent a draft proposal to curb aluminium and alumina capacities in the winter to major producers in China, but market participants say cuts will be not be implemented until the fourth quarter of 2017 and not without “serious reworking” of the plans.
The environmental authority proposes to cut operational aluminium capacity by 30%, alumina by 50% and carbon by 50% in two municipalities and 26 cities across the four provinces of Shandong, Henan, Shanxi and Hebei during the winter when air pollution is most severe in China, a source who had read the draft proposal told Metal Bulletin. The plan suggests shuttering capacities for four months when coal-powered central heating is used in northern China. Rumours that China will cut aluminium capacity have been circulating in the market for weeks. Although market players had downplayed the possibility, worries remained. Aluminium prices on the Shanghai Futures Exchange rebounded at the beginning of January and have performed increasingly stronger on news of the impending aluminium curb plan since mid-January. The front month aluminium contract on the SHFE peaked at 13,990 yuan ($2,034) per tonne on Wednesday January 26, two days prior to the start...
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