A: Due to the price relationship, aluminum smelters will restart the operation and may reduce the global aluminum market shortage.
Higher aluminum prices and incentives for some Chinese smelters to abandon production cuts and restart some other smelters, which may reduce the size of the global aluminum market's first shortage after years of oversupply. Part of the rise in aluminum prices is due to market speculation that there will be a shortage of supply in the aluminum market this year. The analysis conducted in July showed that the market expects a global supply of 235,500 tons of aluminum in the world this year and a shortage of 4,444 tons in 2015. Some analysts expect a shortage of supply next year. The market believes that the main reason for the shortage of supply is that global aluminum producers have cut hundreds of tons of capacity in recent years, but some analysts may adjust their estimates as some smelters restart production. The resurgence of Chinese smelters has attracted much attention, and many high-cost smelters have been hit hard by falling prices, but they have now resumed operations. According to the consultancy, China's annual production capacity of about 1.3 million tons has resumed operation in recent years, and a small amount of production capacity will be restarted in the northwestern region such as Gansu. The annual output of aluminum smelting restarted this year may be about 1.6 million tons. China's primary aluminum production in August increased by 8.8% year-on-year to 2.027 million tons, the first time to break 2 million tons.
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