FACTBOX-China aluminium smelters idled by low prices
HONG KONG, Oct 16 (Reuters) - Low prices are spurring aluminium smelters in China, the world's top producer and consumer of the metal, to shut down some high-cost capacity, reflecting a wave of shutdowns in the global market.
Many smelters are making losses daily because spot prices, now at about 13,700 yuan ($2,006) per tonne, are below production costs of 16,000-18,000 yuan.
LMWE contract prices MAL3 of the metal have fallen 37 percent after hitting a record of $3,380 a tonne in July.
If prices stay weak, more aluminium smelting capacity could be idled in coming months, causing output to miss analysts' and smelter officials' expectations for 14.0-14.5 million tonnes of primary aluminium this year, versus 12.3 million in 2007.
Smelters' production cuts and plans in coming months: Company Capacity Closure/plan
(tonnes) Chalco-Shandong 70,000 Closing all capacity Chalco-Zhengzhou 60,000 Closing two-thirds Chalco-Pingguo 140,000 May shut 25,000T Chalco-Zunyi 242,000 May shut some capacity Aostar Aluminium 250,000 Closing 40,000T Emei Aluminium 150,000 Closing less than a third Zhongfu (600595.SS) 300,000 Has shut 50,000T;
delaying startup of 250,000T
smelter to next year Longquan 600,000 May shut some capacity Qingtongxia 400,000 (excl JV) Watching market Yunnan Aluminium 400,000 Watching market Xinfa 1.04 mln No plan Weiqiao 750,000 No plan
Note: The Shandong plant of top producer, Aluminum Corp of China Ltd (Chalco) (2600.HK)(601600.SS)(ACH.N), is shutting a further 1 million tonnes of capacity of alumina, the main raw material for the metal. It shut 300,000 tonnes of alumina capacity earlier.
Source: Company officials. ($1=6.830 Yuan) (Reporting by Polly Yam; Editing by Clarence Fernandez)
