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Aluminium Output Drops in China

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SHANGHAI, China (Aug 9) – Aluminium output in China, the world’s biggest producer, will grow this year at the slowest pace in five years because of higher power prices and government measures to curb investment and exports. Output may rise 10 % to 7.4 million metric tons from 6.7 million tons last year, said Wang […]

SHANGHAI, China (Aug 9) – Aluminium output in China, the world’s biggest producer, will grow this year at the slowest pace in five years because of higher power prices and government measures to curb investment and exports.
Output may rise 10 % to 7.4 million metric tons from 6.7 million tons last year, said Wang Gongmin, deputy chairman of the China Nonferrous Metals Industry Association. Production is well short of output capacity, which will rise to 9.5 million tons this year.
World prices of aluminium gained 22% last year, prompting mainland companies to increase capacity to produce the metal used in cars, bicycles, buildings and beverage cans.
Earnings have been squeezed this year by higher costs for electricity and alumina, a white powder used to make aluminium, new export taxes and a 4% decline in metal prices. About two-thirds of aluminium smelters lost money in the first half, said Wang, forecasting more smelters may lose money in the second half. Lanzhou Aluminium, the second-biggest publicly traded firm in the sector, said July 23 that first-half profit dropped 42% because of increased material and power prices. (Source: BLOOMBERG)

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