British media said that China launched the latest efforts to curb air pollution for the aluminum alloy price increase to add new impetus to the global aluminum industry to bring hope. Aluminum is the best performing metal this year.
According to the British “Financial Times” website on March 3 reported that Alcoa and other global manufacturers of stock prices soared this week, after the Chinese government issued a directive requiring limited production. Before the eyes turned to aluminum, the Chinese government last year ordered the reduction of China’s coal production, so that coal prices soared.
have risen 15% this year, outperforming the nickel and copper on the London Metal Exchange and up 3.4% in the past five days alone.
According to the Financial Times, a document released by the Chinese Ministry of Environmental Protection and six local governments shows that nearly 30 northern cities will cut aluminum production by more than 30 percent to reduce winter air pollution.
“From a market reaction, it is clear that investors believe that the news is a clear policy step, with the goal of reducing China’s long-term aluminum production,” said an analyst at TEDA Asset Management.
Analysts said that although the above documents did not specify when to cut, but most likely in November. They added that the implementation of the production capacity to determine the extent of aluminum prices will determine whether the continued gains.
Deutsche Bank analyst Grant Spolet said China’s aluminum alloy price production grew by about 2% per month over the past six months.
The cuts are part of a wide range of measures aimed at reducing air pollution in Beijing, Tianjin and the surrounding areas, targeting coal-fired boiler emissions as well as cement plants, steel mills and power plants.
Aluminum alloy price rose 10% this week, up 35% this year. Century aluminum shares soared 80% this year. In Europe, aluminum producer Norwegian hydro power company’s share price rose nearly 20%
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