Alumninum Corp of China, or Chalco, has been forced to shut down two plants in Guizhou due to electricity shortages caused by a tight coal supply and inclement weather, the Wall Street Journal reported. Analysts say the shutdown could translate into a 1% reduction in profits this year for China’s largest aluminum producer. Continuing power shortages in China could also force other smelters to shut as 13 provinces face electricity rationing. The total electricity shortfall is estimated at approximately 70 gigawatts, or one-tenth of China’s total electricity generating capacity. Responding to concerns expressed by China’s State Grid Corporation, on Wednesday the National Development and Reform Commission called on the coal industry, electricity providers and government agencies to ensure domestic coal supplies remain steady.
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