The launch of electrolytic aluminum production capacity will slow down in the medium and long term, which is good for aluminum prices

Relevant data show that China's electrolytic aluminum production in February was 3.
007 million tons, with an average daily output of 107,400 tons, and an annualized output of 39.
1979 million tons, up 0.
05 million tons/day from the daily output of 106,900 tons/day
in January.
In February, the new production capacity of electrolytic aluminum continued to be released, and Nissan increased
.
According to the current new production situation, it is expected that China's electrolytic aluminum production in March 2021 will be about 3.
334 million tons, and the daily chemical output will be about 107,600 tons, and the monthly average daily output will continue to rise
.

Although the production of electrolytic aluminum has increased, under the influence of the concept of "carbon peak" and "carbon neutrality" proposed by the state in September last year, the release of electrolytic aluminum production capacity may be suppressed, because 70% of electrolytic aluminum production capacity in China is generated by thermal power, and under the guidance of the spirit of double carbon, traditional thermal power generation capacity will be suppressed
.
This policy has already had a substantial impact
on companies in Mongolia within the traditional thermal power generation area.

Inner Mongolia has eliminated preferential electricity prices for high energy consumption in Mengxi, including electrolytic aluminum
.
The cancellation of preferential electricity prices, in the short term, the increase in the production cost of electrolytic aluminum is relatively limited, but in the medium and long term, it will even slow down the production progress
of electrolytic aluminum.
Moreover, the Inner Mongolia Autonomous Region has stipulated that in principle, no new electrolytic aluminum production capacity
is allowed.
As the policy continues to advance, Shandong and Xinjiang, the main producing areas of thermal power generation, may also issue relevant regulations to restrict high-energy-consuming industries
such as electrolytic aluminum.
In the medium and long term, the launch of electrolytic aluminum production capacity will slow down, which is good for aluminum prices
.