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Below is quote on Aluminum update By Mr. Yash Sawant, Research Associate, Angel Broking Ltd

China’s Aluminium supply

In August’21, China’s Aluminum production was down for the fourth consecutive month as increased power usage limitations in major smelting regions took a hit on the operational activities.

As pet the National Bureau of Statistics, China’s primary Aluminium production last month stood at 3.16 million tonnes, down about 3.2 percent in July’21.

Limitation on energy-intensive smelting capacities and restricting illegal over-production (western Xinjiang region) has hampered Aluminum supply chain. China’s Yunan province (accounting for 10 percent of China’s Aluminium output) have asked the smelters to keep the production levels in the remainder months of 2021 in line with August’21 output. 

Aluminium market is expected to remain tight as the energy usage limitation in China are expected to increase in the coming months in order to curb their emission levels. 

Despite the global uncertainties and beak demand prospects from China Aluminium prices are up over 35 percent on the LME and MCX in 2021.

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