Industry Update
Electrolytic aluminium capacity reduction since 2014 Q4 is less than 30% of that over the same period of 2013-2014

Wang Chunhui, analyst of Shanghai Metals Market, says on Shanghai Copper and Aluminium Summit that there has been only 395 k tons of aluminum capacity reduction since 2014 Q4 and the increased supply of electrolytic aluminum is mainly the result of dropping production cost and China Aluminium Corporation shoring up the market.
Average electricity cost for China’s aluminum producers has been greatly lowered as coal prices have continuously slipped and more and more producers have generated electricity themselves.
The news is confirmed by multiple traders that part of big aluminum producers cooperate to limit aluminum ingot sale.