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Supply Side Reform In Electrolytic Aluminum Industry
- Aug 04, 2017 -

The ongoing supply side reform of the electrolytic aluminum is expected to have a greater impact on the aluminum industry.The reform will continue to push the aluminum in higher prices. Previously, in electrolytic aluminum industry, the blind expansion of private enterprises caused  huge overcapacity. The supply side reform of electrolyticaluminum is a structural reform, which creates a fair competition environment for electrolytic aluminum industry. As the relevant policies continue to be exerted, the supply-demand relationship in aluminum industry is expected to reverse.It is estimated  the next 2-3 years domestic aluminum market will be in short supply situation.  

   It is also said that in the second half   of  the year 2017, production-cutting in  electrolytic aluminum industry will enter the substantive stage, so aluminum price will continue to increase. At present, electrolytic aluminum supply side reform focuses on cutting illegal capacity. After the subsequent production capacity shutdown, the central government is expected to superintend all parts of the electrolytic aluminum supply side reform implementation.

In terms of the annual trend of aluminum prices, it is expected that this year's domestic electrolytic aluminum industry supply and demand may appear tight balance.The short supply will make the aluminum price rise again.