950807

China aluminium

output may rise

LONDON: China's aluminium production is expected to rise to about 1.6 million tonnes in 1995, up from 1.446 million in 1994, Macquarie Equities said in their latest Weekly Commodities Report.

Latest official figures show output up 20 percent in the first four months of the year.

"If current production rates are maintained, Chinese output will total over 1.60 million tonnes this year," the report said.

Much of the recent increases have come from small-scale smelters controlled by regional authorities as opposed to the China National Non-ferrous Metal Industry Corp (CNNC).

Plant operators raised their output to take advantage of the then relatively low alumina price, Macquarie said.

Chinese smelting capacity is expected to rise by as much as 190,000 tonnes in 1995 with CNNC expansions in Gansu province contributing to the rise.

Macquarie expects aluminium imports to rise from 129,000 tonnes in 1994 to 270,000 in 1995. Exports are forecast to rise from 122,000 to 250,000 tonnes.

Apparent consumption is expected to rise from 1.453 million tonnes last year to 1.620 million this year, Macquarie said.-Reuter