Commodity reported that aluminum processors in China have received notices from energy suppliers asking them to brace for power cuts as the country faces electricity shortages this summer, potentially heralding disruption across the industry.
Shutdowns of fabricators, which process the ingots made by smelters into products, may cut demand for the refined metal. Smelters in the world's largest aluminum producer may be next in line to get notices that their power supplies may be interrupted.
According to State Grid Corporation of China, an electricity shortfall this summer may be as much as 40 GW surpassing the 2004 record. Power prices for industrial and commercial users in 15 provinces will be raised from today, according to the National Development and Reform Commission.
China's output of aluminum products rose 33% to 6.155 million tonnes in the first 3 months of this year. The country's output of so called primary aluminum, made by smelters, climbed to a record 1.45 million tonnes in April.
In domestic markets, Aluminium prices were trading at INR 119.7 per kilogram. Aluminium has tested an intra day low of INR 119.2 and a high of INR 120.3 per kilogram till now.
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