China’s six large aluminium producers have agreed to set up a joint venture company for commercial aluminium stockpiling in the domestic market, the state-backed metals research firm Antaike said.
It said the six companies — Aluminum Corporation of China (Chinalco), China Power Investment Corporation, Shandong Weiqiao Aluminum & Power Co., Ltd., Yunnan Aluminum Co., Ltd., Gansu JISCO Dongxing Aluminum Co., Ltd. (JISCO is the short for Jiuquan Iron & Steel (Group) Co., Ltd.), and Hangzhou Jinjiang Group — had signed the investment agreements for the proposed joint venture.
It has not been decided how much the joint venture firm will stockpile but the plan, Reuters said, has been discussed over the past few weeks after aluminium prices fell to multi-year lows in the second half of last year. It is is likely to be funded by commercial loans and the stockpiling amount is expected to be between one and two million tonnes.
China is the world’s top producer and consumer of primary aluminium used in items from airplanes and cars to window frames and soda cans.