Chinese aluminum output to remain high if no power cuts
Chinese aluminum production hit an all-time high last month and could limit further price gains if feared power-related supply interruptions end up not materializing after all, Commerzbank says.
Chinese data showed an 8.7% year-on-year rise in aluminium production to a record of 1.54 million metric tons. “Smelters have clearly raised production sharply in anticipation of bottlenecks in power supply during the summer months,” Commerzbank says.
“Should the power shortage not be as serious as feared, aluminum production is unlikely to fall significantly but is more likely to stay at its current very high level, according to the Chinese data provider SMM.
The high supply surplus on the global aluminum market would therefore remain and the significant oversupply should prevent further substantial price rises.”
Guangdong Dongyangguang Aluminum (600673) plans to issue 900 million yuan worth of five-year corporate bonds, reports p5w.net, citing a company filing.
Online subscription will take place on June 15 while offline subscription will be conducted during the June 15-17 period.
The coupon rate will range from 5.2 percent to 5.8 percent.
The issuer has the option of raising the coupon rate while bond buyers could sell the bonds back to the issuer at the end of the third year.
Thirty-five percent of the total funds raised will be used to repay bank loans totaling 320 million yuan and the remainder will be used to replenish working capital.
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