The increase reflects a rise in production in the Guangxi region. Local smelters have re-started pot lines that have idled since the end of 2011 because of power supply difficulties.

The Guangxi government has since granted smelters preferential power tariffs to boost economic growth. As a result, it is estimated that nearly 300Kt/yr has been re-started in the region.

Yinhai Aluminium accounts for 240Kt of Guangxi’s increased production from two smelters in the area. Chalco Guangxi Co is responsible for an additional 30Kt/yr.

Aluminium production in Yunnan and Guizhou provinces have also risen following an easing of power tariffs. Output at Yunnan rose by 21% in May.

In Henan, China’s leading aluminium-producing province, plans are afoot to cut power tariffs for local smelters. Such a move might bring back on-stream an estimated 700Kt/yr capacity that has idled since early 2012.

Source: China Metals.