Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Aluminium production capacity in China’s Guangxi Autonomous Region could drop by more than 500,000mt, according to local media reports as authorities directed industry to ensure orderly consumption of electricity during peak hours


The Guangxi Power Grid Corporation in South China issued notice to the Guangxi Autonomous Region industry cautioning them if the electrolytic aluminium enterprises in the area fail to implement restrictions on production, there will be a need to further expand production curbs. 


There are six aluminium producers in Guangxi province that have a collective capacity to produce 1.76mn mt. The power company remarked that electrolytic aluminium companies failed to adhere to its earlier instructions issued on July 14 which urged them to reduce power consumption for a stable electricity supply in the entire district. 


Earlier, an emergency peak-shift power rationing policy was implemented in Yunnan province in Southern China which is known for its aluminium and silicon production.


Large scale production cuts were implemented in Yunnan in late July, for a second time which lowered aluminium companies production by 25-30pc in the region.

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