2 metals producers to cut production

Two Hong Kong-listed metals producers will join their rivals in cutting production as global prices for metal have fallen below production costs, the South China Morning Post reported. A spokesperson from Aluminum Corp of China (Chalco) was quoted as saying that all aluminium smelters were losing money and "current prices are at a level nobody can bear." Sources told the paper that Chalco would shut down aluminium smelters in Shandong and Henan provinces and cut alumina capacity at its Shandong plant by half, or 1 million tons. Anhui-based Maanshan Steel will cut production by 15% this month due to weak demand and falling prices. A spokesperson said the firm may prolong the production cut if weak demand continues.