MARKET TALK: Alumina Cut Unlikely To Spur More Smelting

Largely-expected decision by China's Chalco (2600.HK) to cut alumina price another 19% not expected to encourage extra aluminum metal output in China given Beijing's measures to constrain energy-intensive exports, says Global Mining Research's Tony Robson. As China's apparent 750 tons of idle aluminum capacity continues to cast shadow over market, Beijing's scrapping of aluminum export rebates, talk of introducing charges likely to offset smelting incentives provided by lower production costs courtesy of cheaper alumina.