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China considers fund to cope with aluminium producers closure
[BEIJING] China is considering setting up a fund to cope with the closure of aluminium producers and combat volatility in the futures market, Wen Xianjun, vice chairman of China Nonferrous Metals Industry Association, said on Tuesday.
China's aluminium producers have previously pledged to cut production amid plunging prices for the metal. Aluminium prices on the Shanghai exchange fell for six straight years before staging a pick-up this year.
China is the world's top consumer and producer of aluminium.
Mr Wen said aluminium prices between 11,780 yuan and 12,000 yuan (S$2,477 and S$2,524) per tonne would be a reasonable average level for this year. Prices are currently around 11,875 yuan a tonne.
In February, six large Chinese aluminium producers said they were considering forming a joint venture company to handle primary aluminium stockpiling.
The stockpiling plan was put on ice in April, an industry body official said, after prices pushed higher.