China’s coronavirus lockdown to have ‘inevitable’ impact on aluminium output as zero-Covid policy impact spreads

Name: 3.6 million in southwestern China city of Baise locked down after single Covid-19 case
Uploaded: 2022-02-09T12:30:23.000Z
Duration: 1 min 21 s
Description: 3.6 million in southwestern China city of Baise locked down after single Covid-19 case

The border city of Baise reported 72 locally transmitted cases on Tuesday, pushing the total to 180 since Saturday

China is the world’s largest aluminium producer, but the lockdown of the resource-rich city on the border with Vietnam is set to disrupt aluminium production

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China is the world’s largest aluminium producer, with output rising by 8.6 per cent from a year earlier to 38.5 million metric tons in 2021, according to data from the National Bureau of Statistics. Photo: Reuters

Frank Tang

Published: 8:30pm, 9 Feb 2022

China’s latest coronavirus lockdown has driven up the price of aluminium, with an impact on production expected to be “inevitable”, in the most recent supply chain disturbance caused by the nationwide zero-Covid policy.

The resource-rich border city of Baise reported 72 locally transmitted cases on Tuesday, pushing the total to 180 since Saturday, which was the penultimate day of the week-long Lunar New Year holiday.

The city, which is part of Guangxi Zhuang autonomous region that borders Vietnam, was placed under strict lockdown on Monday with all travel and transport halted.

The travel ban will inevitably affect production as workers are unable to return factories

Sun Kuangwen

“The travel ban will inevitably affect production as workers are unable to return to factories,” Xinhu Futures analyst Sun Kuangwen said on Tuesday.

“Road transport was particularly affected, prolonging the delivery of aluminium ingots and impact on aluminium supply in the southern region.”

Aluminium is a key metal widely used in construction, which is increasing in China amid the traditional construction season after the Lunar New Year holiday coupled with Beijing’s increased focus on infrastructure to stabilise the economy.

The spot price of aluminium ingots in the southern region jumped by 2.8 per cent on Monday when lockdown was imposed, and it has risen by 6.5 per cent over the last three days overall to 23,080 yuan per tonne (US$3,625), according to Wind Info.

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3.6 million in southwestern China city of Baise locked down after single Covid-19 case

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