Aluminum Corporation of China, National Power Investment Corporation, China Hongqiao, Jiugang Group, Yunlu Aluminum and Jinjiang Group reached an agreement today to reduce their joint production when the aluminum price of the previous period fell to RMB 11,500/ton.
Metal Bulletin Journals quoted a person familiar with the matter as saying that China Aluminum Corporation, State Power Investment Corporation, China Hongqiao, Jiugang Group, Yunlu Aluminum and Jinjiang Group reached an agreement today that the aluminum price in the previous period will fall to RMB 11,500/ton. Reduced joint production.
The media mentioned that the China Nonferrous Metals Association convened an aluminum producer meeting on June 13th to discuss measures to jointly stabilize aluminum prices. There was no official statement after the meeting. Metal Bulletin Journals stated that it was from Antec, a metal information provider. News learned from the report.
At the same time, China Nonferrous Metals Industry Association today convened the six backbone aluminum companies to hold a symposium in Beijing. The meeting focused on the structural reform of the supply side of the aluminum industry and communicated on the recent supply and demand situation and aluminum price strategy. Market participants pointed out that aluminum companies are in a dilemma. One fears that high prices will lead to a resumption of production.
Due to the collapse of aluminum prices, many domestic large-scale electrolytic aluminum plants reduced their production last year. The corresponding output of domestic electrolytic aluminum also began to fall back from the second half of 2015, but as aluminum prices rose to 12,000 yuan/ton or even touched as high as 13,000 yuan. / Ton, domestic closed electrolytic aluminum production capacity and new projects are just around the corner.
After experiencing a sharp increase in the first quarter, Shanghai Aluminum futures prices fell from the highest point of April 25 to 12,965 yuan. The largest accumulated decline has exceeded 10%. The aluminum price has rebounded slightly in recent days and is currently reported at 11945 yuan. The lowest price since April was at 11,590 yuan on June 8.
According to data from the National Bureau of Statistics, China’s output of electrolytic aluminum in May was 2.68 million tons, which was flat year-on-year, but the monthly output reached a record high in November 2015.