That brings the y-t-d primary production to 11.88Mt, a rise of 6.72% over Jan-Aug of 2010.
But in terms of annual rate, August production is still a bit lower than the peak of 19.03Mt hit in June this year, equating to 18.83Mt. This reflects the lower utilisation rate at smelters in operation due to disruptions by power shortages in southwest China.
Following suspensions at smelters in Guangxi, smelters in Guizhou also have started to cut production. About 10% of the 1Mt/y capacity in Guizhou had been suspended as of mid-September.
Some smelters in Henan, China’s leading aluminium producing province, have cut back production due to the high power price.
All this, in addition to the accelerated process to eliminate potlines using obsolete technology, leads us to believe that primary production in China will hardly accelerate its pace of growth in the rest of the year.
Source China Metals