Due to the drought and water shortage, China's Yunnan Province started a new round of production cuts on aluminum smelters in order to stabilize the power supply, which will impact approximately 740,000 tons of production capacity per year. So far, around 1 million tons of capacity have been suspended.
Fortunately, there are still sufficient stocks in London and China, which can meet the demand of the Yunnan market for the time being.
Yunnan has gradually become a major aluminum production center in China in recent years, with an annual production capacity of aluminum of about 5.25 million tons.
It was expected that the newly installed power capacity in Yunnan will be mainly by solar power in the next few years. Experts said that with more renewable energy, Yunnan's power supply will gradually stabilize in the next two to three years.