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On Tuesday, Feb. 7, Baise, China’s main aluminum-producing city, reported a surge in local covid-19 cases for the third consecutive day and the resulting lockout, which exacerbated concerns about supply disruptions for the metal.
Restrictions due to increased covid cases in Baise have already affected alumina production while many producers are experiencing disruptions on the transportation front.
As for aluminum production, Guangxi Province has maintained normal production for the time being. At the end of January, operating capacity was about 1.98 million tons, including 1.73 million tons in Baise City. But considering the uncertainty of the duration of the pandemic and the enormous pressures of logistics, there is a risk of production cuts in the medium and long term.
The sudden outbreak of the pandemic could also impact subsequent shipments of aluminum ingots and billets in southern China.