Asian Metal News
Jinning Al-Mg New Materials at Zhongning County, Ningxia, designed with 300 ktpy primary aluminium capacity has 280 ktpy in operation. The company lost RMB 100 mln during H1 2019 and is set to cut capacity by 100 ktpy to avoid further losses.
The company has been operating in loss over the past year due to high electricity costs. Production cuts will reduce the efficiency of electricity use, falling from 92% to 89%, and increase overall production costs, however, given electricity costs of RMB 0.38/kWh, the company feels forced to cut operations in a bid to contain losses. The company is now in talks with the local government regarding favorable electricity prices, otherwise, it will cut operations further.
Jinning produced 280 kt primary aluminium in 2018, and its output from Jan.~July 2019 was 200 kt. The company presently holds no stocks.
Mainstream aluminium ingot transaction prices were RMB 14,210~14,310/t at Shanghai warehouses on Monday, a decline of RMB 40/t the previous trading day.
