Will China Reduce Aluminium Production During The Winter Months?

The airplane that brought you to your holiday destination is most likely made from aluminium in Thailand as well as the high tech gadget you are using to text and call. Aside from the day-to-day conveniences provided by aluminium, it is also the sustainable material of choice of many markets all over the world. Aside from being lightweight, aluminium is durable and can be recycled over and over again.

As winter closely approaches China, large swaths of industrial capacity have to stop production in Beijing and Tianjin. Curtailments in production will also apply to the smelting process of alumina and carbon anode. The price of alumina has surged recently and there is still no clear answer whether this sector will be impacted by winter.

According to China’s President Xi Jinping, the choking smoke that envelops many cities in China’s industrial heartlands will be replacedby blue skies during winter’s heating months. Industries that are known as heavy pollutants have to reduce their output from November to March. This means a massive disruption to the supply chain. Companies expect aluminium production to be reduced by 30%.

Large quantities of aluminium are used by auto manufacturers who want to reduce the weight of their vehicles. Aluminium is produced through coal power which is the number one enemy of Beijing. Since China is the largest producer and exporter of semi-manufactured aluminium products, how will the cut in production affect the world?

The lack of a ready answer is keeping the London aluminium price just below September’s 5-year high of $2,199 per tonne. Because of the complex pricing conundrum, instability can be felt in the global marketplace.

China is making a massive experiment to reduce smog in the cities but now it is everybody’s headache. For what it’s worth, aluminium production will probably last as long as China’s war against smog.

Aluminium has become so critical so that the world can enjoy the conveniences it provides. In fact, aluminium in Thailand is used widely in doors and windows including the roof when the homeowner wants to reduce energy consumption. Aluminium is being seen as the global solution to reduce dependency on fuel in the future.

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