SHANGHAI, Jan 4 (SMM) - In July 2022, the operating aluminium capacity in China reached a high of 41.4 million mt. However, since August, smelters began to close their potlines due to power rationing.
Sichuan: Almost the entire aluminium production capacity in Sichuan was shut down in August, dragging down the national operating capacity to 40.83 million mt. Aluminium production began to gradually recover in September. As of December, the operating capacity in Sichuan recovered to 56% of the installed capacity in the province.
Yunnan: Aluminium capacity in Yunnan was reduced by over 20% in September due to power shortages and the operating capacity in the province stood at 4.16 million mt in September, dragging down the national operating capacity to 40.28 million mt. In Deceber, operating capacity in Yunnan stood at 4 million mt, equivalent to 72% of the installed capacity in the province. And it is expected that the production reduction in Yunnan will continue until about May 2023 when the rainy season arrives.
Guizhou: In December, local aluminium smelters also began to shut down their potlines due to power shortages. In mid-December, Guizhou Power Grid issued a notice for power load reduction. Following the notice, smelters reduced capacity by about 30%, reducing the operating capacity to about 870,000 mt and the operating rate to about 53%. On December 28, smelters in Guizhou received notice of further production cuts. If the reudction is implemented, the operating capacity in the province may fall to 700,000 mt.
