British media attention to China's pollution control limited production of aluminum: Aluminum promotion price exceeded 2000 U.S. dollars per ton
As China continues to control pollution and push ahead with reforms to upgrade its overly large industrial base, aluminium prices topped $2000 a tonne for the past 3 years, British media said. The metal is used to make many products from beverage cans, cars to building beams.
The oversupply of light metals has cast a shadow over the market since the financial crisis, the Financial Times website reported on August 8th. But this year, as China moves to cut capacity, this disadvantage is beginning to pick up. China accounts for about half of the world's aluminium output.
Some measures taken by China, such as requiring metal smelters to reduce their operating capacity during the winter, are aimed at managing air pollution. Other measures aim to curb overcapacity and give the domestic aluminium industry a more solid foothold.
In a statement released on 8, China's Shandong province said the province had ordered the closure of 3 million 210 thousand tons of electrolytic aluminum production.
Wood Mackenzie consulting company company said that this number in 2017 accounted for about 9% of the total Chinese aluminum production, so large-scale production may make the market a serious shortage of supply, and have a significant impact on the price".
The company said in a recent report said: "the Shandong shut down the illegal production capacity will send a strong signal to the market participants and domestic companies, that this is different - the provincial government will not protect any illegal smelters."
On the London Metal Exchange, aluminum futures for 3 months were up 1.75% to $2008 a tonne on 8, meaning it had risen almost 18.5% since the beginning of the year. In 2016, the average aluminium price was $1604 per ton.
The performance boosted the metal index of the London Metal Exchange (tracking the performance of 6 major industrial metals). Today, the index climbed to its highest level since 2014.
The rise in aluminium prices is a boon for large manufacturers such as China Aluminum and Limited by Share Ltd. The company's share price has risen by more than 50% in the past month.