SHANGHAI (Scrap Monster) : Weak aluminum prices have forced Chalco- the top Chinese aluminum producer to cut the production by 9%. The company has announced temporary shutdown of facilities in China.
Chalco ( Aluminum Corporation of China) in its regulatory filing submitted to the Securities and Exchange Commission states that it will cut around 380,000 metric tons aluminum facility. However, Chalco has not listed out the names of facilities that would be closed.
The other big industry players like Rusal and Alcoa had earlier announced their decision to significantly cut down production due to weakening prices and falling demand. Rusal-world’s largest producer of the metal had earlier announced to downsize production by 300,000 metric tons by 2013. The company also is seriously planning to permanently shut down 275,000 metric tons facilities by 2015 end. Recently, Alcoa announced 15-month review programme to identify loss-making units and announced production cuts to the range of 460,000 metric tons.
The global aluminum market is seen passing through tough times as the price has fallen drasticallyin the recent past. Moreover, the global market surplus situation is anticipated to worsen further. Chalco had reported a net loss in operations the previous year mainly due to the narrowing demand and falling prices.