China's Yunnan province has ordered the aluminium smelters in the region to implement another round of production restrictions to stabilise the electricity supply.
The protracted drought and low reservoir levels have caused problems for the province's hydroelectric grid. However, On February 19, 2023, Alcircle.com reported the possibility of power rationing in the Yunnan region, which might impede the production of the aluminium smelters.
The energy-intensive aluminium producers in Yunnan and neighbouring provinces had been already functioning their smelters with reduced capacity, while a few are trailing down China's national output since September.
According to our regional sources, some 740,000 tonnes of yearly production capacity would be affected by the most recent cuts, adding to the million tonnes that are already down.
Alcircle.com's latest release of Global Aluminium Industry Outlook 2023 reveals that China's primary aluminium output increased to reach 40.2 million tonnes in 2022 and holds a share of 59.11 per cent of the global production.
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