We’ve been working non-stop lately, those of you who are subscribers and therefore get our daily newsletter very well know, but for those of you who aren’t, here’s some info you might not want to miss.
On Sunday, (yes Sunday!)
We found out Shandong’s Nanshan Aluminiuim and Xinjiang Jiarun reached agreement on a management takeover. Nanshan will take operational control of Jiarun. This agreement will allow Nanshan to take over the smelter, which in turn will provide a surer metal flow guarantee for downstream customers.
We understand this “engagement” may lead to a full marriage in the future.
On Monday we covered the Hongqiao issues clarifying statement
“China Hongqiao, the world’s largest alumimum producer, and listed on the Hong Kong stock exchange, has issued a press release to clarify the situation with closure of illegal operating capacity. I read the English translation 3 times, spoke with my Chinese staff, spoke with a Reuters reporter about it, and still don’t quite understand what they were trying to say.”
We’ll keep you updated on that!
Fast forward to Tuesday…
The NDRC, together with the MIIT and 16 other government departments has issued some guidelines for defusing the risk of coal over-capacity. According to the document, they will focus on eliminating backward capacity, shutting down enterprises that don’t meet mandatory standards, eliminating illegal capacity and controlling the roll out of new capacity.
Does all that sound familiar? To me, I could remove the word “coal”, and replace it with the word “aluminum” and the policy would not change…
Would love to share the entire story with you dear readers, but it wouldn’t be fair to our beloved subscribers.
Last but not least, this month on THE BLACK CHINA REPORT, we report on the rising price of petcoke, as well as some changes in the market for anodes. Overall, anode quality petcoke is still short, and in some areas is quite tight, With the Winter Heating Season cuts just 3 months away, some smelters in China have started stockpiling anodes.
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