Six Chinese companies recently considered setting up a joint venture (JV) or taking measures to buy electrolytic aluminum for commercial reserves, the cnstock.com quoted a source as saying on Wednesday.
These companies are Aluminum Corp. of China (Chinalco), State Power Investment Corporation (SPIC), Shandong Weiqiao Aluminum and Electricity Corp, Yunnan Aluminum Co. (000807.SZ), Jiuquan Iron and Steel Group and Jinjiang International Group.
In last December, 14 domestic aluminum enterprises discussed the issue of buying electrolytic aluminum for reserves. But the result has not been unveiled yet.
"It is commercial reserve, not the concept of state reserve. It is a "self-help" measure jointly taken by the producers. The six companies will take some of their goods for centralized storage," said Zhu Yi, a metal analyst.
In the short term, the news will lend support to the market. But possibility that enterprises outside the alliance will increase production to eat into the market share can not be ruled out, said analysts.
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