As a result of the shortage of hydropower in Yunnan after the Chinese New Year holiday, a new round of power rationing is likely to be introduced again to impede aluminium production. In addition, some aluminium smelters are already planning to halt their electrolytic cells.
The rumours of electricity restrictions did not surprise aluminium smelters. Several of them had already planned ways to reduce their energy usage, although the formal announcement regarding power rationing has yet to be made.
A fresh wave of power restrictions is reportedly set to begin in Yunnan from February 13 to February 15, and aluminium producers will have to reduce their capacity by around 650,000 tonnes annually before reducing it further depending on the water level, as reported by SMM. However, on February 11, Qiya Aluminum Co., Ltd. began to suspend production, reducing its 55,000 tonnes annual capacity.
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