In early August this year, the media reported that China Hongqiao, the world's largest aluminum producer, would shut down 2.68 million tons of non-compliant production capacity, accounting for about 30% of its total production capacity and to maximize its current operating rate to maintain production at its current level . Nowadays, China has released another plan to reduce pollution in North China from October. The market is expected to step down its order to cut output of aluminum and steel products. On August 24, the price of aluminum on the Shanghai Futures Exchange surged 3.2% to RMB16.65 million (US $ 2500) a tonne, the highest price since the contract was close to 2011.
Flowering analyst said: "From 2017 onwards, demand growth will exceed capacity growth, resulting in improved operating rates and aluminum prices."
Analysts at JPMorgan expect that aluminum prices will continue to rise at a rate of $ 100 a tonne in the fourth quarter and the market collectively realized that despite the fact that Chinese aluminum inventories have more than tripled this year, supply-side reforms have been The price of aluminum, which is well supported by the price of aluminum, is likely to prompt smelters outside China to restart production and push the global market into a surplus.
Faced with this situation, Ampang analysis, the aluminum industry as a national reduction in production capacity of one of the industries, the gradual emergence of the implementation process of state-owned enterprises and private enterprises due to the face of the implementation of different pressures, in order to achieve the goal of going to capacity, private enterprises assumed a more Big stressful situation. Under such circumstances, especially under the pressure of environmental pollution control, private enterprises have to bear the brunt of capacity-building. As a result, market shares are lost and their impact on the international market is affected.