China's 14 largest aluminum producers on Thursday last week agreed to limit their production capacity and not resume production of the "winged" metal at the already shut down plants.
The companies, which account for about 75 percent of aluminum production in the People's Republic of China (PRC), have decided to increase "production flexibility" and keep the maximum metal production at 44.1 million tons.
During the meeting, other important decisions were made, on which the participants reached a high degree of consensus, the Chinese Association of Nonferrous Metallurgy reported.
On Monday, grateful market participants reacted with an increase in share prices. China's Jiangxi Copper gained 7.4 percent and Aluminum Corp. of China - by 3.2 percent.
According to estimates of the world's largest aluminum company, Rusal, at current prices for aluminum, taking into account a premium of about 53 percent, or 14 million tons, production outside China is unprofitable and on the verge of closure.
From January to September 2015, the installed aluminum production capacity in China increased by 2.45 million tons to 37.7 million tons. About 3.0 million tons of new capacities were launched and about 616 thousand tons were restarted during this period.
Chinese aluminum producers prevent Armageddon in the non-ferrous metals market
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Azovpromstal® 14 December 2015 г. 14:05 |
