Aluminum hit record prices as China slashes output

 Aluminum Corp of China, China's largest aluminum producer, and its peers -- which together produce over 70% of the country's aluminum output -- signed an accord today to curb supply by 5-10% , according to media reports.

That equates to a maximum output cut of 400,000 tons in the second half of the year for China, the world's largest aluminum producer. The cut is expected to save 5.8 billion kilowatt-hours of electricity, the China Nonferrous Metals Industry Association said in a statement, without elaborating on how long the cuts will last for.

The government-backed association made the announcement against the backdrop of China's problematic power situation and comes as the Beijing Olympic Games draws near.
The 20 companies "also call for other producers in the country to cut output, showing support for the Beijing Olympic Games and creating an easier market condition for the industry," the association said in the statement.

Jump in aluminum prices
China's move Thursday is the latest in a series of attempts by the country to curb production in its aluminum industry, in an attempt to curb energy use ahead of the Beijing Olympics this summer.