China Ramps Up Aluminum Output as 20% Rally Allows Restarts
- As much as half of country's capacity is profitable, Wen says
- Smelters that can get positive cash flow encouraged to restart
A worker moves the aluminum pipes at the Qinghai Guoxin Aluminium workshop in Qinghai Province.
Photographer: Feng Li/Getty ImagesThis article is for subscribers only.
Aluminum smelters in China, which supply more than half the world’s metal, are restarting idled plants after a price rally, according to the industry group that brokered an agreement in December to curb capacity.
As much as half of Chinese smelter capacity is profitable at current prices, Wen Xianjun, deputy chairman of the China Nonferrous Metals Industry Association, said in a phone interview, adding the restarts weren’t a breach of the December accord because the pact allowed for flexibility in production.